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Leasing vs. Buying a Used Car

Two important considerations when looking for a vehicle are whether to select

new, used, or certified pre-owned and whether to lease or buy. If you’re a

first-time buyer, you’re looking to rebuild your credit, or you simply want to

save money, a used or certified pre-owned vehicle may be your best option.

If you ultimately do settle on looking for a used or certified pre-owned

vehicle, the next step is deciding whether to lease or buy. In the following

eBook, we delve into the pros and cons of leasing vs. buying a used vehicle

as well as a few tips for shopping for your next used car. And at this end

of this eBook, you’ll find a coupon you can use to save on your next used

vehicle purchase.

Now, let’s get started!



Leasing a Used Car: Pros & Cons

Many used car buyers don’t consider the possibility of leasing their next

vehicle. However, it can be a wise way to save money in the short term and can

eventually lead to car ownership.

Lease payments generally are cheaper than when you purchase a vehicle, plus

you may not need to make a down payment, which is great if you don’t have

a lot of extra cash available for one. However, lease agreements usually have

mileage allowances, which limits how many miles you can drive per year or

lease term without paying a penalty. You also may be charged extra for any

damage that occurs while you’re leasing the vehicle.

You’ll also want to find out what kind of

warranty may be available when leasing a used

or certified pre-owned vehicle and what the

warranty covers. Then you can determine

whether you’ll be responsible for paying for

maintenance or other repairs.

A disadvantage of leasing is that you can’t do

anything to change or upgrade the vehicle.

For instance, if you want to replace the

entertainment system, you can’t because you

don’t own the vehicle.

At the end of the lease term, you’re required to

either return the vehicle in its original condition

(or as close as possible) or purchase it by buying

out the lease agreement.

Your Options



Buying a Used Car: Pros & Cons

One benefit of purchasing vs. leasing a used or certified pre-owned vehicle is

that you’re free to modify or upgrade it as you choose. For example, you can

jack it up for off-roading, change the paint color, or update the entertainment

system and interior. And once the vehicle is paid in full, you can keep it, sell it,

trade it in for another vehicle, or even give it away. However, we do recommend

staying on top of routine maintenance to keep the vehicle in good shape and

therefore maintain its potential trade-in or sale value.

Like with leasing, a used or certified pre-owned vehicle may come with a

warranty that covers certain aspects of maintenance or repairs. But outside

that warranty, you’ll be responsible for paying for any work that needs to be

done to the vehicle.

The monthly payment when purchasing a vehicle also generally is higher than

when leasing, though the amount of your down payment (or trade-in) may

lower it.



There are some differences between buying or leasing a used vehicle vs. a certified

pre-owned vehicle, so you’ll want to consider the following:

A Used Car Isn’t Necessarily Covered by a Warranty

Certified pre-owned vehicles, which go through a more rigorous inspection process

before they’re available for sale, are more likely to come with a warranty. Regardless

of whether you buy or lease used or certified pre-owned, confirm whether the

vehicle comes with any type of warranty and what the warranty entails. Failing to

do this means you may be responsible for expensive repairs or replacements that

you weren’t expecting.

A Used Car May Need Major Maintenance or Repairs

As mentioned, certified pre-owned vehicles undergo a specific inspection process

before they can be sold and usually are newer, have fewer miles, and come with a

vehicle history report. This isn’t always the case with used vehicles.

Special Considerations for Used Car Shoppers



So if you’re opting for a used vehicle, you’ll want to examine the parts under the

hood and around the vehicle before making a final decision. Check the fluids and oil

to make sure that everything looks normal, and check for leaks by looking for liquid

pooling under the vehicle or dripping onto a piece of cardboard. And if you’re not

comfortable making these checks yourself, have an automotive professional do it

for you.

Top Tips for Used Car ShoppersAre you ready to start shopping for a used or certified pre-owned vehicle? Here are

a few more tips and considerations to help you get started:

• Have a budget in mind before searching. This will make it easier for you to find

the perfect vehicle within your price range. As you’re figuring out how much you can

afford to spend, consider the price you’ll pay for fuel, monthly insurance premiums,

and regular maintenance. These expenses should be part of your monthly budget

and should factor into the overall amount you’re willing to pay for your next vehicle.



• Do your research before heading to the dealership. When you’re buying a

new car, the price is fairly close to the

suggested manufacturer’s retail price

on the brand’s website. With a used

or certified pre-owned car, though,

sometimes there’s a bit of wiggle

room for negotiating. You can use a

resource such as Kelley Blue Book’s

KBB.com to check out the fair price

of a particular vehicle. And if you’re

trading in your vehicle, be sure to

check out what it’s worth as well.

• Shop for a used car at a dealership. This is the best way to find a huge

inventory to shop at one time. It’s also a great way to check out some certified

pre-owned options.

Shopping with a dealership also means that you get the value of their reputation,

which will tell you before you even stop in the kind of shopping experience you’ll

likely have. A dealership will be able to work with you if you decide to lease your

next used vehicle as well as find financing if you decide to purchase it.

Start shopping for your next vehicle at your local used car dealer today. Be sure

to bring along the exclusive coupon below so you can save a little cash while

you’re there!

$250 Off Present after negotiating your best deal!Print this coupon and present it to the dealership after negotiating your best deal. Offer valid on the purchase of any pre-owned vehicle. Limit one coupon per household, per transaction. Prior sales excluded. Valid at any Fred Beans location. Offer expires 12/31/2017.

Any Pre-OwnedVehicle

fredbeans.com 1-800-23-beans · save money, a used or certified pre-owned vehicle may be your best...

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