Is leasing an old car a good idea? Is leasing an old car a good idea?

Is leasing an old car a good idea?

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Second hand cars in general are a great option for people looking for cars that will give them great value for their money. But, when it comes to leasing a used car, there are a few things to consider first.

A car lease is a big commitment. Sure, it can be a great way to reduce your monthly repayments but there may still be a residual amount at the end of the term for you to pay.

While you may be weighing up the costs of leasing vs subscription, it’s important to think about all of the inclusions. When looking at car finance or leasing, you may still need to pay for many of the expenses that come with traditional ownership like registration, insurance and maintenance. Not to mention roadside assistance and the car potentially having issues in the future. Basically, if something goes wrong, it will usually come out of your own pocket.

With car financing and car leasing, many people maximise the residual payment to minimise the weekly, fortnightly or monthly payments which may make it seem like a cheaper option, however when it comes to the end of the lease, if your lifestyle or work has changed, it may make it a lot harder to pay it.*

Always be aware of establishment and exit fees that come along with leasing. It also pays to do your research and compare loans and always read the fine print!

The good news is carbar has partnered with CarClarity to make financing your new, demo or used car simple. You can compare from over 30 lenders right now in less than 60 seconds. There are no personalised repayments with no impact to your credit score. Compare finance, calculate repayments and find out how much you can borrow all online here.

If leasing an old car sounds like a big commitment, you can always try subscribing first to see what kind of car you like. With a carbar car subscription you can stop or swap with just 2 weeks notice.

* The advice given is general advice and does not take into account your own objectives, financial situation or needs. You should consider if the advice is appropriate for you before acting and read all applicable terms and conditions of any selected product or service prior to proceeding.