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We are an independent, advertising-supported comparison service. Our goal is to help you make smarter financial decisions by providing you with interactive tools and financial calculators, publishing original and objective content, by enabling you to conduct research and compare information for free – so that you can make financial decisions with confidence.
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Used cars depreciate at a slower rate than new cars, making them an excellent choice if you want a low-cost lease. They’re harder to find, though, and limited used car inventory has further shrunk the market. In addition, you may not recoup the amount you spend on the down payment — which you won’t get back at lease end
Still, you could end up saving quite a bit each month. If you are in the market for newer vehicles that haven’t seen a lot of wear and tear, a used car lease could be right for you
Leasing a used car is similar to leasing a new car. You’ll have to research the vehicle and negotiate with the dealer. But since they are rarer, there is a little more legwork involved in finding a good deal
Not every dealer offers leases on used cars. You are more likely to find leases on certified pre-owned (CPO) cars, which are generally only available at a franchise dealer. You will also want to call or email ahead of time to ensure the dealer sets up used car leases.
Do your research on recent models that you might want to lease. And, most importantly, comparison shop. Even if you aren’t buying the car, check what they are selling for on sites like Edmunds and Kelley Blue Book. This gives you a good starting point during negotiation
Once you have found a dealer that offers used car leases and you have price shopped, it’s time to start negotiating. Like a new car lease, the cost of a used car lease is based on a money factor — similar to the interest rate on a loan.
You will be able to negotiate this along with mileage limits and residual value. The negotiation process is similar to buying a car. You want to ensure you’re getting a fair price on the overall cost, including fees, taxes and the money you are putting down
Your contract will include fees, mileage limits, what maintenance is or isn’t covered and a purchase option. Keep an eye out for any add-ons that you don’t want included. Extended warranties can be useful in some circumstances, but most CPO cars come with a manufacturer warranty
It will also include the expected depreciation and residual value at the end of the lease. Confirm these match your negotiated numbers before signing
Beyond limited inventory, many of the drawbacks of leasing a used car are the same as leasing in general
You have two main alternatives: buy the car outright or look into lease swaps
The most financially sound option is generally to buy instead of lease. You will own the car at the end of your contract, which gives you the option to either sell it or drive it until the end. It opens you up to depreciation and the potential of being upside down on your loan. But for many, it’s the easiest way to get an affordable ride
Of course, if you fall in love with your leased car, you will likely have the option to buy it at the end of the lease term. So, leasing used could be a good way to get in a few cheap monthly payments before committing to a car
Lease-trading sites like LeaseTrader can help you find good deals from people looking to end their lease contract early. The cars you find may not necessarily be considered “used” by dealer standards, but they will have seen some action from another owner
Prepare to research recent models and dealers in your area. It’s not impossible to find a used car lease, but in the current market, it can be difficult. And once you do find a used car to lease, ensure it is a budget-friendly option that suits your driving style
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