Can Used Cars Be Leased? What Dealers Won’t Tell You Might Save You Thousands

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When most people think of leasing a car, they think of vehicles right off the assembly line but you can also lease a used car. Leasing a used vehicle is a less common option but a cheap way to drive a dependable car without making a full purchase. This guide explains how used car leasing works, the pros and cons of used car leasing and details about if it might be right for you.

How Does a Used Car Lease Work?

Leasing a used car works like leasing a new car. Rather than buying a car, you essentially pay for the right to drive one for a predetermined time frame within the restriction of a mileage limit and some maintenance obligations. At the lease’s end you return the vehicle lease a new car or in some cases buy the car fully at a predetermined price.

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However, leasing a used car differs from leasing a new one in the following ways:

Choosing a Vehicle: Most used cars offered for lease are certified preowned model, generally 2–5 years old, that are leased by dealerships or leasing companies.

Depreciation Factor: Since the car has experienced most of its depreciation lease payments are generally lower than what they would be for a new car.

Warranty Pertinence: One of the most reassuring aspects of a CPO vehicle is that they are usually sold with extended warranties that cover major repair and maintenance through the course of the lease.

Where Can You Lease a Used Car?

Used car leasing is largely limited to:

Franchise Dealerships: A number of large car manufacturers, including BMW, Lexus and Mercedes-Benz have CPO leasing programs for their used vehicles.

Independent leasing companies: These companies offer a lease on a used vehicle such as car delivery services.

Car Rental Companies: Major rental companies such as Hertz and Enterprise sometimes rent their lightly used fleet cars.

Benefits of Leasing a Used Cars

Lower Monthly Payments: Because used automobiles have already taken a serious hit when it comes to depreciation their lease payments generally cost less than for new vehicles.

Lower Insurance Cost: Used vehicles typically have lower insurance premiums compared to new ones allowing you to save some more.

CPO Benefits: Certified Pre-Owned vehicles have passed stringent inspection criteria and may offer extended warranties so they can be a safe bet.

Drawbacks to Leasing a Used Car

Not All Dealers Lease Used Cars: Not all dealers lease used cars and your options may be limited to certain brands or models.

Increased Maintenance Costs: Older vehicles may require more fixes and not all of their components are covered under warranty.

Mileage Limitations: Like leasing a new car if you lease a used car there are restrictions on how many miles you can put on it and you will be charged additional fees for exceeding that limit.

Is Leasing a Used Car Right for You?

Used car leasing can be an attractive option for budget-minded drivers seeking lower monthly payments, flexible terms, and access to a newer higher quality certified pre-owned vehicle. But

make sure to read the fine print in the lease terms know your maintenance responsibilities and compare that with financing a used car purchase to see the best financial path.

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