Benefits of Buying an Off-Lease Car & Where to Find One

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Buying a new car can be expensive, and prices continue to rise yearly. What's more, the moment you drive your car off the lot, the value of your automobile depreciates significantly and will continue to do so in the first years of its life.

As a result, many drivers seeking hot new rides enter into a lease agreement with a dealer instead. This arrangement allows them to enjoy a brand-new vehicle with lower monthly payments for about three years, with the caveat that they must return the car in pristine shape at the end of that lease.

This phenomenon provides an alternative to buying a traditional new or used car: the off-lease car.

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What Are Off-Lease Cars?

A lease means the driver is a caretaker of the vehicle for the period of the contract, not the owner. When the leased car's driver returns the vehicle to the dealer, they inspect it to ensure that it meets the strenuous guidelines for its care and condition. They assess a rather expensive fee if that wear-and-tear is not up to par.

As a result, the vehicles often return as expected, and the dealer has a few options. They can make the vehicle available for another lease or turn it into an off-lease car, which means that it is a model formerly on a lease, but now is available for private purchase.

The dealer generally selects the best quality off-lease vehicles for private sales, opting to auction off any that the dealer feels may not provide the best sales opportunity in the private market.

Boom in Leasing Leads to Boom in Off-Lease Vehicles

That perpetual price increase for brand-new vehicles has led to a hike in leasing contracts, as more car-seekers wish for a more affordable monthly payment, even though they realize they will own no equity in the car itself. When the contract ends, they can even start a new lease, meaning they can enjoy a new model every two to four years (depending on the contract length).

The upside for those looking for deals on recent cars is that this also creates a boom in off-lease vehicles since more vehicles are coming off leases that the dealer will want to sell. Market saturation generally leads to even better prices and options, so it's a win/win.

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Should I Buy an Off-Lease Car?

When deciding whether an off-lease car is right for you, you should consider several factors, not the least of which is whether you like the idea of owning a used vehicle, albeit generally a single previous owner for a handful of years.

To help you decide if you should consider off-lease, here are some pros and cons of purchasing an off-lease vehicle:

Pros of Buying Off-Lease

• Affordable Pricing - As the lease owner took the hit for most of the car's initial depreciation, the dealer has already made a profit. That means you will likely get an excellent price for an off-lease vehicle, especially considering the automobile is still a relatively new model.

• Warranty Advantage - Most leased vehicle contracts are short enough not to exhaust the original manufacturer's warranty. You can still enjoy the tail-end if you discover any unforetold problems or experience unfortunate difficulties in line with the warranty.

• Excellent Condition - Speaking of problems with the vehicle, you are far less likely to suffer extensive wear and tear as the lease generally has precise guidelines about the return quality of the car. The lease owner has likely treated the vehicle with great respect to avoid additional fees.
  Furthermore, some dealers acquire a CPO (Certified Pre-Owned Vehicle) on a selection of their leased vehicles, meaning that they perform an elaborate inspection to ensure the car is in tip-top shape. This evaluation can add expense to the vehicle but is worth it for peace of mind.

• Car Variety - With the off-lease boom, you are more likely than ever to find the model you desire in a color you enjoy. Online listing services make it easy to locate specific models, so you can shop around to find the perfect vehicle for your personal preference.
  

Cons of Buying Off-Lease

• Used Vehicle - Even though you can generally expect more excellent care and less wear-and-tear on a leased vehicle, it is still a used car. Unless the dealer has the vehicle inspected to ensure CPO quality, some issues can surpass their rudimentary specifications. Like with any used vehicle, it is a good idea to have them evaluated, especially if you hear any unusual sounds or experience any concerning performance issues.

• Out of Date Technology - This happenstance is generally not much of an issue, but since the car will be a few years old at this point, some of the bells-and-whistles that come with the car might need an update, such as GPS or other features. Furthermore, there are likely newer safety features and more efficient software developments in the new model that may not feature in your off-lease version.

• Cheaper Options - If you are okay with using vehicles, you will be able to find cheaper used cars that have not been part of a lease contract. If saving money is your primary motivator, you might prefer non-lease used vehicles; however, you are far more likely to experience problems as they are likely older and potentially have had multiple owners.

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Where to Find a Car That's Off-Lease

There are far more benefits than detriments in shopping for an off-lease model. When you are ready to find yours, most dealerships partition a section of their show space to showcase their off-lease options. If you cannot locate them by sight, there will undoubtedly be a sales representative who can help you.

Fortunately, most dealerships make their off-lease stock available online, so you can browse local listings or even perform nationwide searches using third-party listings, such as AutoTrader.

Conclusion

If you are in the market for a car, want a newer model, and don't mind a gently used vehicle, an off-lease model might be the best option.

They are considerably more affordable than a new vehicle, making it possible to have that dream car you might not be able to afford brand new. Plus, due to the strict leasing requirements on wear and tear, they are generally in excellent shape, often with only a single previous owner.