You may be thinking: since I can lease a new vehicle, can I get a lease on a used car? The answer is yes, used car leases are a real thing. Though they may not be as advertised as new car leases, getting a used car lease is easier than you think. It can be a great way to get into a car that you may not have been able to afford outright, and without the long-term commitment.
The main drawback of getting a used car lease is that your options are more limited. You won’t be able to choose from the latest models and you might have to settle for the cars available on the lot. If you are looking for newer models, read our guide on how to get the best deal on a new car.
If you are looking to lease a used car, read on. This guide will tell you everything you need to know about getting a used car lease.
Advantages/Disadvantages of Used Car Leasing
There are both advantages and disadvantages to leasing a used car or certified pre owned car. Here are the pros and cons:
What Are the Advantages of Leasing a Used Car?
- You can drive a nicer car than you could afford to purchase outright.
- You don’t have to worry about the hassle of owning a car.
- You’re typically responsible for paying for depreciation costs and damage, which can be cheaper than the depreciation for new vehicles.
- Leases typically last for two or three years, which is shorter than the average length of a car loan.
What Are the Disadvantages of Leasing a Used Car?
- You’re responsible for paying for depreciation costs and damage, which can be expensive on any lease.
- Leases typically last for two or three years, which is shorter than the average length of a car loan.
- If you decide to purchase the car at the end of the lease, you may have to pay a high price.
- You’re not allowed to modify the car in any way.
Used Car Leases vs New Car Lease
What is the difference between leasing a used car a new car? There are several advantages in getting a used car lease versus going with a traditional lease. Read on to find out.
The Car is Always Available
When you lease a new car, in some cases the car dealership may not have the car on the lot. In this case, the car dealership has to order the car from the manufacturer and it can take weeks or even months for the car to arrive.
With used car leasing, you know the dealership already has the car on their lot and is ready to go.
Depreciation Rate
Another difference between leasing new and used cars is the depreciation rate. When you lease a new car, the car loses around 20% of its value in the first year. When you lease a used car, the car loses around 10% of its value in the first year. This is because a new car has never been driven before, while a used car has already been driven and is closer to its natural depreciation.
Monthly Payment
Used car leases usually have lower monthly payments than new car leases. This is because the used car has already taken a depreciation hit, so the lease payments are lower.
Access to Luxury Brands
Looking for a luxury car, but don’t want to pay the high price tag? Used car leases are a great way to get access to luxury brands at a fraction of the cost, and even if you have less than perfect credit.
Mileage LImits
One downside of leasing a new car is that you are often limited in the number of miles you can drive each year. This can be a problem if you drive a lot for work or have a long commute. With a used vehicle lease, however, this is not usually a problem because the car has already been driven and has more miles on it.
How to Lease a Used Car
So now that you know leasing used cars is possible, how do you go about it? There are a couple of options you have when it comes to used car leasing:
Option 1: Lease Used and Certified Pre Owned Cars from Car Dealerships
There are many franchise dealerships and independent dealers that offer used car leasing options. To find one near you, dealerships in your area. Once you have a few dealerships in mind, you will want to contact them and ask about their used car lease terms and conditions.
Steps to Leasing a Used Vehicle from a Dealership:
- The first step is finding a dealership that offers used car leases. Not all dealerships do, but it’s worth checking with your local ones just in case. Once you find a dealership, they will likely have a few different models of used cars and certified pre owned vehicles to choose from.
- Contact the dealership and ask about their used car lease terms. This will include information such as the length of the lease, how much the monthly payments are, and what happens at the end of the lease.
- After you’ve agreed to the terms, go ahead and sign the lease agreement and pick up your new used vehicle.
- Make monthly payments to the dealership for the cost of the car and the interest rate.
- At the end of your lease term, you have a few options: purchase the car, return it, or renew your lease.
Here are some tips on getting a used car lease from car dealerships:
- When you lease a used car, the dealership will act as the lien holder and owner of the vehicle. You will then be responsible for making monthly payments to the dealership, which will cover the cost of the car as well as interest.
- When your lease ends, you have a few options: you can purchase the car, return the car, or renew your lease.
- If you choose to return the car, make sure you do so in the condition it was leased in.
- If you choose to renew your lease, the terms and conditions may change, so be sure to ask the dealership about that.
Option 2: Takeover an Existing Lease
Another option for leasing a used car is to take over an existing lease. This can be a great option if you want to avoid having to go through the process of finding a car and negotiating a lease. When you take over an existing lease, you will become the new lessee on the lease agreement and will be responsible for all payments associated with the lease. The best way to find an existing lease to takeover is to search online. There are many websites that allow you to search for leases in your area and contact the lessee directly.
Steps to Taking Over a Lease:
- The first step is finding a lease to takeover. This can be done by searching online or contacting local dealerships.
- Once you find a lease, contact the lessee and ask for all the information you need about the car and the lease agreement.
- Make sure you understand all the terms and conditions of the lease before agreeing to take it over.
- If everything looks good, go ahead and sign the lease agreement and pickup the car.
- Start making payments to the leasing company for the cost of the car and interest.
- At the end of the lease, you have a few options: purchase the car, return it, or renew your lease.
Things to Consder When Taking Over a Lease:
- When taking over an existing lease, there are a few things you will want to keep in mind:
- Read over the lease agreement carefully and make sure you understand all the terms and conditions.
- Contact the existing lessee and get as much information as possible about the car, including maintenance history and any accidents or damage the car may have been in.
- Be prepared to pay a lease transfer fee, which is typically around $100.
- Before you sign a lease, make sure to ask about early termination fees.
Additional Add-ons to Consider
While you’re leasing a used car, there are a few things you may want to consider adding on to your lease agreement.
Car Insurance
The best way to protect yourself while driving is by having car insurance. Talk to your insurance agent about adding car insurance to your lease agreement. This way, you’ll be covered in case of an accident.
Roadside Assistance
If you’re ever stranded on the side of the road, roadside assistance can be a lifesaver. Most roadside assistance programs offer towing, jump starts, and other services that can help you get back on the road.
Vehicle Maintenance
One of the benefits of leasing a used car is that you don’t have to worry about vehicle maintenance. However, it’s always a good idea to have a plan in place for regular maintenance, like oil changes and tire rotations. This way, you’ll avoid any costly repairs down the road.
Extended Warranties
Extended warranties give you peace of mind in case something goes wrong with your car. Talk to your dealer about adding an extended warranty to your lease. This way, you’ll be covered for a certain number of years or miles.
When you’re looking for a new or used car to lease, it’s important to consider all of your options. Leasing a used car can be a great way to get access to a nicer car than you could afford to purchase outright, while still keeping your monthly payments low. Just make sure you weigh the pros and cons before making a decision.
Use a Car Broker to Help You Find a Used Car Lease
If you’re not sure where to start when looking for a used car lease, consider using a car broker. A car broker will help you find the perfect car and lease agreement for your needs and budget. This can be a great way to save time and money when leasing a used car.
If you’re interested in leasing a used car, contact us today to learn more about the options available to you. You may be surprised at just how affordable it can be!
