Can You Lease a Used Car?

If you’re in the market for a used vehicle in the St. Louis, Missouri, area, you may wonder if you can lease a used car instead of buying it. In many cases, the answer is yes. Leasing a pre-owned vehicle can save you financing costs, especially if you have your eye on a newer vehicle with low mileage.

How Does Used Car Leasing Work?

Leasing a used car is similar to leasing a new car. Lenders determine the lease price based on the depreciation value. Used cars depreciate at a slower rate than a new vehicle, making them more affordable to lease. Because of the slowed depreciation rate, the overall monthly payment rate is lower for a leased used car than one that has a traditional used car auto loan.

Used car leases are often hard to find, so you’ll have to shop around to find a dealer and lender who will work with you. Many manufacturers will only lease a certified pre-owned (CPO) vehicle with fewer than 48,000 miles, so you’ll need to check with your dealership to see if they have any CPO vehicles you can lease.

What Are the Pros of Leasing a Used Car?

Leasing a pre-owned vehicle has many advantages, including:

• The depreciation costs are reduced. Used cars depreciate slower than a new car, lowering the difference between the sale price and estimated lease-end value.
• The monthly costs are lower. Because of the lowered depreciation costs, your monthly lease payments are lower.
• The vehicle is well maintained. If the car was a previous lease, the person who previously leased it needed to keep up with maintenance under the lease contract policies, resulting in a well-maintained pre-owned vehicle.
• The insurance rate is lower. Depending on the age and mileage of the car you’re leasing, you could have lower auto insurance costs.
• You can afford a luxury vehicle. While you may not have the resources to get a loan or a lease for a new luxury vehicle, leasing an upscale used vehicle gives you the opportunity to enjoy driving the vehicle for a reduced lease cost.
• After the lease contract is up, you can lease another vehicle. Unless you fall in love with your leased used car and want to buy it, you can turn it back in and lease another pre-owned car of your dreams.
• You have the option to purchase the car at the lease end. As with a lease on a new car, you’ll have the option to finance and purchase the leased car you’ve been driving.

What Are Some of the Cons of Leasing a Used Car?

Leasing a used car has some of the same cons as leasing a new car. Take into consideration the following if you want to lease a pre-owned vehicle:

• You are responsible for the wear and tear of the vehicle. Because most cars have outlived the original warranty, you’ll have to pay for any wear and tear the dealer deems beyond normal.
• Maintenance costs are on you. You’re responsible for all maintenance costs, including oil changes, repairs, and anything not covered by a normal warranty.
• You’ll have mileage limits. Leased vehicles, whether new or used, come with mileage limits. If you don’t drive a lot and won’t exceed the limited mileage, leasing a used car can be a good option. Keep in mind that if you do go over the mileage limits, you’ll have to pay for each extra mile.
• Not all dealers will lease a used car. Used car sales are on the rise, and many dealers are short on inventory. They may want to keep the inventory for a sale as opposed to a leasing option. You’ll want to research and shop around to find a dealer and lender who will lease a used car.

Should I Finance or Lease a Used Car?

Ultimately, you want to look at your finances, credit history, driving needs, and your desired make and model of the car to decide if leasing a used car is the right choice for you. Buying a used car instead of leasing it gives you unlimited mileage, the option to sell the car anytime you want, and the ability to make modifications not allowed in a lease agreement. Financing a used car is often easier than leasing one, as most used-car dealerships offer used car financing with various terms and conditions based on your budget.

How Does One Go About Leasing a Used Vehicle?

If you’ve decided that leasing a used car is the right option for you, you’ll want to take the following steps:

• Find a dealer who will lease a pre-owned car. Some franchise dealerships offer used car leases, but again, these are generally CPO vehicles with 48,000 miles or fewer. If you see a car you want from an independent dealership, you need to contact them and see if they’ll lease you one of their pre-owned vehicles.
• Call the brand lender. If you want to lease a car from a particular automaker, you’ll need to call the lender for that brand to see if they offer leases on their CPO vehicles. If you decide to shop for a specific CPO brand, then you’ll need to find a dealership that carries that brand of CPO vehicles.
• Get a price quote and start the paperwork. Work with the dealer for a fair leasing price, and be sure to get the residual value of the car in case you want to buy the vehicle at the end of the lease agreement. Work with the finance team to determine a fair down payment and monthly payment plan to fit your budget.

Leasing a used vehicle is a viable and cost-efficient way to experience what it’s like to own a vehicle without the commitment of buying it. To learn more about leasing a used or pre-owned vehicle in the St. Louis area, contact our team at AutoCenters Herculaneum. Our professional finance team can work with your particular budget and financial needs to find the perfect used car to lease.

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