Leasing a car is often seen as a way to drive a new vehicle without the long-term commitment and higher monthly payments associated with buying. But what if you could lower those monthly payments even further? Enter the world of leasing used cars, a less common but increasingly savvy approach to personal transportation. If you’re considering your options and wondering if you can Lease Used Cars, you’re in the right place. This guide will walk you through the process, highlight the benefits and drawbacks, and help you determine if used car leasing is the right path for you.
Step-by-Step Guide to Leasing a Used Car
While not as straightforward as leasing a new car, leasing a used car is definitely achievable. Here’s how to navigate the process:
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Identify Potential Lenders: Start by researching captive lenders associated with specific car brands. These are the financing arms of automakers, like Toyota Financial Services or Ford Credit. If you’re interested in a particular make, check if their captive lender offers leases on Certified Pre-Owned (CPO) vehicles. A quick online search for “[brand name] finance phone number” should lead you to their customer service contact.
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Establish a New Car Lease Comparison: Before diving into used car leases, arm yourself with information. Obtain a lease quote for a comparable new car model. This benchmark is crucial for evaluating the value proposition of a used car lease. Knowing the new car lease terms will help you judge if the used option truly offers significant savings.
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Locate Your Ideal Used Car: Utilize online resources like Edmunds or Cars.com to search for used cars that fit your needs. Focus your search on Certified Pre-Owned (CPO) vehicles, as these are more likely to be eligible for leasing. Remember that the used car market may require flexibility. You might need to compromise on color or specific features. Select a few vehicles from different dealerships to increase your chances of finding a suitable lease option.
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Find a Dealership Ready to Lease Used: This is often the most challenging step. Used car leasing isn’t as common as new car leasing, so finding a dealership that offers this service may require patience and persistence. You may need to contact multiple dealerships.
When you find a used car you’re interested in, contact the dealership and ask to speak with an internet manager or sales manager. Inquire specifically about leasing a certified pre-owned car in their inventory. If you initially encounter a “no,” politely ask the manager to double-check with a higher authority, as the option might be available but not widely known by all staff. Be prepared for a callback as they investigate this less common financing option.
Exploring Alternatives if Initial Attempts Fail
If your initial dealership inquiries are unsuccessful, don’t be discouraged. Persist with other dealerships on your list. The availability of used car leases can vary.
Request a Price Quotation: Once you locate a dealership that facilitates used vehicle leases, request a detailed price quote. Remember standard car shopping best practices apply here:
- Negotiate a fair purchase price for the used car, using resources like the Edmunds appraisal tool to ensure you’re getting a good deal.
- Obtain the residual value of the vehicle. This is important if you consider buying the car at the end of the lease term.
- Clearly understand the total down payment and the monthly lease payment, including all applicable taxes and fees.
Verify and Compare: Carefully compare the quoted price of the used car lease against the new car lease quote you obtained earlier. If the savings are substantial, it might be the right time to schedule a test drive and finalize the lease agreement.
Advantages of Leasing a Used Car
Why consider leasing a used car? Here are some compelling benefits:
Reduced Monthly Payments: This is the primary draw for most people considering used car leasing. Certified Pre-Owned (CPO) vehicles have already undergone their steepest depreciation, resulting in a lower selling price compared to a brand-new equivalent. This lower price point, even when combined with a potentially higher money factor (similar to interest rate), translates to significantly lower monthly lease payments.
Luxury Car Accessibility: Dreaming of a luxury brand but constrained by budget? Leasing a CPO vehicle makes brands like BMW, Mercedes-Benz, or Lexus more attainable. The reduced cost compared to leasing a new luxury model can bring your dream car within reach.
Attractive Lease Buyout Potential: Used cars, having already depreciated, have lower residual values at the end of the lease term. This can make a lease buyout a more financially sound option. If you’ve grown to love the vehicle, purchasing it at the end of the lease could be a smart move. However, always conduct thorough market research and factor in potential maintenance and extended warranty costs associated with owning an older vehicle.
Extended Powertrain Warranty: CPO vehicles often come with an extended powertrain warranty, sometimes reaching up to 100,000 miles. This is a significant advantage, particularly if you are considering a lease buyout, as it provides long-term peace of mind regarding major mechanical components.
Potentially Lower Insurance Costs: The reduced value of a used car can lead to lower auto insurance premiums compared to insuring a brand-new vehicle. This adds to the overall cost savings of leasing used cars.
Disadvantages of Leasing a Used Car
While leasing used cars offers numerous advantages, it’s essential to be aware of the potential downsides:
Increased Interest Rates: Used car leases typically come with a higher money factor (interest rate) compared to new car leases. This can offset some of the savings from the lower vehicle price. Carefully evaluate the overall cost despite lower monthly payments.
Maintenance Expenses: A used car, by definition, has miles on the odometer and may require maintenance sooner than a brand-new vehicle. Factor in potential upkeep costs, as you might encounter maintenance needs earlier in the lease term than with a new car lease.
Older Features and Technology: Used cars, especially those a few years older, may lack the latest safety or technology features found in current model-year vehicles. If having the newest bells and whistles is a priority, ensure the CPO vehicle you choose has the features you desire.
Absence of “New Car Smell”: While a CPO vehicle is new to you, it’s not factory-fresh. Expect minor cosmetic imperfections like scratches, stains, or dings.
Exploring Alternative Used Car Lease Options
Beyond traditional dealerships, alternative avenues exist for leasing used cars:
Lease Transfer Websites: Websites like Swapalease and LeaseTrader facilitate lease transfers. These platforms connect individuals wanting to exit their existing car leases with those seeking short-term lease deals. Often, the original lessee has already made a down payment, which can eliminate this upfront cost for the lease transferee. In some cases, the original lessee may even offer a cash incentive to encourage someone to take over the lease. Assuming an existing lease can be a cost-effective way to get into a used car lease with minimal upfront expense and potential added incentives.
Used Car Leasing: Not a Universal Solution
Leasing used cars is a smart strategy for budget-conscious shoppers, but it’s not the only path to affordability. Aggressive incentives on new vehicles, such as cashback rebates, lower money factors, or end-of-model-year deals, can sometimes make leasing a new car a more financially advantageous option than leasing a used car that is only a couple of years old.
However, if you’re interested in leasing a popular car model that doesn’t typically have substantial incentives, leasing a used version can be an excellent strategy. It allows you to drive a vehicle that closely matches your preferences for significantly less money. By carefully considering the pros and cons and following these steps, you can make an informed decision about whether leasing used cars is the right move for your transportation needs and budget.
