Can You Lease a Used Car?

One of the most common questions people ask before leasing a car is how to do it. Leasing a used vehicle mirrors the process of leasing a new car, including the following steps: 

1. Check your credit score and create a leasing budget. 
2. Find the car you want to lease and negotiate the purchase price. 
3. Discuss leasing the vehicle instead of financing it. 
4. Negotiate any further terms, including the lease terms, mileage restrictions, and money factor (similar to an interest rate). 
5. Review and sign the lease agreement. 
6. Drive away in your new lease.

Used car leases can be harder to find than new car leases. However, used car leases often stem from vehicles that have returned from their first lease and struggle to sell. A dealership may offer a lease on these cars to make a profit and then move the car to another segment where it might have a better chance of selling. 

Finding the best carlease deals takes knowing where to look, especially if you’re looking for a used car lease. Many leasing companies offer leases. You can also typically find a used car lease in the following places: 

• Car dealerships: Most dealerships that offer used car leases provide them on certified pre-owned cars. Many of these CPO vehicles also come with a warranty. 
• Lease takeover sites: Current lessees can work through sites like Swapalease.com and LeaseTrader to find someone to take over their lease. These cars are technically used since you wouldn’t be the first to drive them. 
• Buy here pay here dealerships: These dealerships work with lessees with less-than-perfect credit, but leasing with them should be approached cautiously as the fees can outweigh the benefits. 
• Bespoke car dealers: Well-qualified and endowed lessees can potentially lease from specialty car lots. These lots may deal in classic, exotic, or luxury vehicles.

In addition to locating where you can find a used car lease, figuring out the best time to lease a car can help you get a better deal. However, if you can’t wait for the best time, you can subscribe to a car with FINN. Each subscription comes with flexible terms and the chance to have your new car delivered to your front doorstep. 

The best way to lease a car depends on what kind of car you’re looking for. New car leases are relatively straightforward in that you lease a brand-new car and return it after a set period. In most new car leases, maintenance is covered in the deal you sign, which may or may not include a down payment. Those who want to drive the latest vehicles typically move from one new car lease to another. 

In contrast, used car leases don’t necessarily put drivers at the cutting edge of technological features, advanced driving aids, and the latest safety features. Warranty coverage may or may not apply, depending on how many miles the used car has or its age. Used car leases also feature cars that aren’t necessarily perfect, as they’ve been driven before. However, leasing a used car can cost less than a new one because depreciation has already taken a significant toll. 

If you’re a visual person, the following lists indicate the benefits of leasing a used car and what drawbacks you may encounter. Compare these to the pros and cons of leasing newer vehicles as you decide what you want to drive for the next few years. 

Pros

• Many may be like-new, having only been leased a time or two 
• Most used car leases have been well-maintained
• Additional maintenance may be covered under an existing warranty 
• Costs you less in sales tax
• Lower monthly lease payments
• Avoid the drain of depreciation
• Can potentially purchase at the end of the lease 
• You may be able to afford a more expensive vehicle than if you were financing 
• Car insurance premiums may be less on used cars versus new cars

Cons

• Used car leases aren’t as common as new car leases
• The manufacturer’s warranty may not cover maintenance 
• The money factor may be higher on used car leases
• Used car leases still come with mileage limits and related restrictions
• Technology and features may be outdated 
• Maintenance costs can be expensive 
• Leases don’t build equity 
• Market values can be volatile 
• Leases tend to cost more than financing a car purchase 
• Lease-end fees can be expensive 
• Used car leases can come with more wear and tear 
• Some lenders and automakers may not offer a lease buyout option

Leasing a used car can help you experience what it means to lease with lower monthly payments than on a new vehicle lease. Leases help potential buyers test drive a model for an extended period to determine if they’re ready to move forward with a purchase. However, leasing doesn’t build equity and can cost more than financing a vehicle in the end. 

Leasing alternatives include renting a car, financing a car loan, or subscribing to services such as FINN. With a FINN car subscription, your monthly payment covers insurance, registration, depreciation, and maintenance. FINN lets you pick from various mileage limits and terms, including a minimum of six months up to two years.