Cheap used cars : buy leasing returns – why are these cars so cheap?
Whether audi, ford, BMW or mercedes: leasing returns can be far more interesting than conventional used cars. We will show you the advantages and disadvantages of buying a leaseback vehicle.
A vehicle returned by the lessee to the lessor is called a lease return. These returns come either from individual contracts or from fleet leasing contracts and were used either by private individuals as private cars or by companies as company cars.
leasing returns have a decisive advantage over conventional used cars: when you buy leased cars, they are usually still quite young – usually two to four years old.
In this article you will find information on the following topics:
Also positive: leased vehicles are serviced in brand-name workshops that comply with the contract. So you can be sure that any defects have either been noted or already repaired.
In addition, the purchase of a leased car has the advantage that the vehicles have been inspected by either TuV or DEKRA at the end of the contract period – a further security when buying a leasing return.
How good are lease returns?
Regular maintenance is an integral part of the leasing contract. So the car is usually checked out. When buying a used car, on the other hand, you must trust the information provided by the seller and his checkbook, which is not always available. Not every buyer is in a position to carry out a comprehensive technical check themselves. Often, leased vehicles are also visually in very good condition, because the previous lessee did not want to take the risk of being below the agreed residual value. In addition, lease returns usually have only one previous owner.
If the leased car is a former company car, it will probably be equipped with numerous extras: navigation system, special headlights, automatic transmission and leather upholstery are just some of the extras you can get when you buy one of the many leased cars. In addition, it can be assumed that a company car has been in the wash more often. A prestigious exterior is of great importance for service cars and automatically entails good maintenance.
Another security when buying a lease return: since you usually buy such vehicles from a dealer, the car sold comes with a used car warranty that you can fall back on in case of doubt. Because of these many advantages, lease returns have long been considered a secret tip. But why are these vehicles so secret when they offer so many advantages?? For a long time, leasing returns were only sold to dealers. Nowadays also private persons have the possibility to buy the cheap used cars.
Why are lease returns so favorable?
It is advantageous for the lessor if a car is sold quickly. This benefits the buyer when negotiating the price. Also, the margin for the intermediary is eliminated. Used car dealers often keep their vehicles in the yard for weeks, while leasing companies often only keep them for seven days. So the capital should not be tied up for a long time – a quick sale is interesting for the lessors. So a leasing return can become a bargain for the buyer, provided you buy directly from the leasing companies. However, they often do not receive any professional advice here – but a test drive can be carried out at least.
Thanks to lease returns, you can acquire current mid-range and top-of-the-range models such as the BMW 5 Series, various Audi models or the Mercedes Benz E-Class at a relatively good price. The lessee has already suffered the greatest loss in value of the vehicle. Conclusion: a great potential for saving money when buying a used car lies in the showrooms of the leasing companies.
What to look for in lease returns?
Pay attention, as by the way also with the purchase of "normal" vehicles used cars, especially those with a young year of construction and the lowest possible mileage. It is also advantageous if the contractual leasing period was as short as possible and there is only one previous owner. All lease returns have a checkbook anyway, but be sure to have it shown to you.
Be careful with former company cars: the mileage is often extremely high. Field service employees in particular like to use leased cars and drive a lot of kilometers over the course of the contract term. As with used cars you should always look for hidden defects. It doesn’t hurt to call on the expertise of someone you know – even if the vehicle has already been inspected by TuV or DEKRA. Finally, you must ensure that the defects identified have already been rectified to a satisfactory extent.
Where to buy lease returns?
You can buy lease returns directly from leasing company showrooms, from intermediaries, or via the Internet. The direct purchase from the lessor has the advantage that there is no additional margin from an intermediary. Also on the internet this margin can often be omitted.
With dealers, a third party is involved in the purchase of cars, so additional costs may be incurred under certain circumstances. But there is also an advantage: professional advice and a test drive are included in the price. What all providers have in common is that they often offer upper and mid-range cars from BMW, mercedes-benz or audi. Car brands such as ford, opel or VW – usually in the combined version with diesel – are also frequently for sale. Also keep your eyes open for auctions of leasing returns.
all in all, lease returns are a good and inexpensive alternative to conventional used cars. However, it is quite possible that the leased vehicle was previously used by the customer purely as a utility vehicle and treated accordingly. In this case, you may be luckier with a used car that has been nurtured as an owner-occupied vehicle in terms of condition.
This is not the only reason why, when you buy a leased car, you should take a close look at the vehicle and the checkbook, and test drive it. This is the only way to find out for sure whether the leasing return really delivers what it promises.