Off Lease Cars and Vehicles - Good Deals?
We are often asked about the value of off-lease cars and whether these kinds of vehicles are worth considering as used car purchases or leases.
Let's first understand exactly what off-lease cars are, and dispel a couple of misconceptions about them.
When leased cars are returned to a lease company, the return is typically made to a new-car dealer, who handles the return for the lease company. The lease company is often the financial division of a major car manufacturer. Ford Motor Credit and Toyota Finance are examples.
Generally, the lease company arranges for the vehicle to be transported from the dealer's store to a central location for resale, or to a car auction location. However, many times, the dealer to which the vehicle is returned likes the vehicle enough to buy it from the lease company to sell on his own used-car lot.
Dealers often proudly advertise such vehicles as "off lease" because they know most have been treated well, are almost new, and have relatively low mileage. Customers know this. Many are inspected, given an extended warranty, and placed into a dealer's "certified car" program, which guarantees a higher selling price and more profit.
Some independent used car dealers advertise themselves as specializing in off-lease vehicles, implying a higher quality of vehicles. However, since there's no convenient way of confirming if a vehicle has been previously leased, it would be wise to take the claims with a proverbial grain of salt.
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Automotive consumers sometimes confuse leasing with renting and believe that leased vehicles are abused and that "off lease" cars are to be avoided. This is not true of most off-lease vehicles.
There may certainly be cases of leased vehicle abuse but, in general, leased vehicles are better cared for than purchased vehicles, particularly for vehicles in the luxury category. The risk to potential buyers is relatively small and any rumors that suggest otherwise are much exaggerated.
In summary, off-lease cars are generally well worth your consideration if you are looking for a late model, clean, low mileage, and well maintained vehicle.
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