Beepi announced Wednesday that its used-car leasing program has officially gone live and is now available in each of the company’s 16 markets.

That includes Houston, which Beepi added to its roster this week. 

As reported earlier, Beepi is offering the leases through the Ally Pre-owned SmartLease product launched in late March.

“Beepi is all about taking the hassle out of the car-buying experience. We’re trying to make sure that our sellers and buyers have a great experience transacting with their vehicle,” Beepi head of business development Daniel Bilbao told Auto Remarketing earlier this month.

“For us, used-car leases make a lot of sense, because it’s choice. You have the flexibility to decide, ‘Do I want to get rid of my car after three years? Do I want someone else to have to take care of that?  Do I want to be getting into a loan for six, seven, eight years?’ That is not hassle-free,” he said, referring to the long-term loan.

Giving more options to a buyer allows him or her to make a financing choice that’s more amenable to his or her lifestyle. For instance, he said, are there big changes, like having kids, on the horizon? Does the customer want to be locked into a long-term loan?

“It goes to the ethos of simplicity and taking hassle away from transactions that Beepi is all about,” Bilbao said.

According to Experian Automotive data shared at the NADA Convention & Expo, the average monthly payment on a new-car loan in the fourth quarter of 2015 was $493. That compares to an average monthly new-car lease payment of $412.

So, would used–car leasing offer a similar pricing advantage?  

“Used leasing, in general, can be as competitive as a loan,” Bilbao said, “but when you think about it, all else being equal, if you lease a vehicle, you have the option of staying with the car or you can dispose of it without having to be on the hook for it.

“Although in new, price is a key component to it, in (Beepi's used-car leasing program), we believe it’s going to be quite competitive, but there’s a lot more to a lease than just the fact that you pay less,” he said.

It’s really more about convenience, not having to buy the vehicle outright and having options, Bilbao said.

As far as the logistics, when the lease is up, Beepi will come out to pick up the car and perform a final inspection. The company will then work with Ally on the remarketing process, whether that’s selling it themselves or going through one of Ally’s remarketing channels, Bilbao said.

Payments and residuals are also done through Ally.  The lessee also has the option to buy the car when the lease is up.