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Can You Lease a Used Car?

When it comes to car buying, you may be torn between buying and leasing. While leasing a car might be an attractive option if you want a different car every few years, you might be turned off by the high monthly payments for the cars you’re interested in. What you might not realize is that you can also lease a used car. Although used cars make up only a small percentage of the leased car market, it’s still possible to lease a used car. And with used car prices at record highs, leasing a used car could be a smart financial decision.

So how can you lease a used car, and is it a good idea? We have the answers.

Which Used Cars Can Be Leased?

Used cars that are available to lease are typically Certified Pre Owned (CPO) vehicles from car dealerships. A CPO vehicle is a late-model used car that is sold by a franchised dealer after it has been thoroughly inspected, and comes with a factory-backed extended-powertrain and bumper-to-bumper warranty. Each manufacturer has different criteria for their CPO vehicles, but they generally will be less than 6 years old and will not have more than 48,000 miles on the odometer.

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You can also take over a lease from someone who wants to get out of their lease. It could be because they are facing a hardship or because they no longer require a vehicle. Whatever the reason, they will post their car on a leasing company website like SwapALease.com or LeaseTrader in hopes that someone can take over their lease so they won’t have to incur the penalties associated with breaking their lease contract. In this case, you won’t be required to make a down payment, and you can likely negotiate with the seller to have them pay the transfer fees. However, when taking over someone’s lease, you should estimate how much you plan on driving the vehicle to make sure that you don’t exceed the mileage limit. If you do go over the mileage limit, you will have to pay a penalty when you turn the car in.

How To Find a Used Car to Lease

Used-car leases from dealerships are rare and aren’t widely advertised. The best way to find a leased used car is to do the legwork yourself. All major manufacturers, both mainstream and luxury, offer CPO vehicle leases. (Be sure to check out our handy guide on what Certified Does Pre-Owned Mean?) However, some automakers, including Stellantis, Ford, and Nissan, require outside financing, while Toyota’s finance department does provide financing for used vehicle leases.

The best way to find a used car lease is to decide what vehicle you are interested in, and call around to franchised dealerships to see if they offer used car leases on their CPO inventory.

How to Shop For a Used Car Lease

When deciding if leasing a used car is right for you, you should always shop around. Just as you should compare prices when shopping for used vehicles, you should contact multiple dealerships to see which offer the best pricing.

You should also compare the cost of leasing a used car with the cost of a new car. New car leases often come with better finance rates and may also have incentives and special offers. This cost difference between a new-car lease and used-car lease will be smaller with used Honda and Toyota cars, while the savings will be more significant on luxury vehicles from Acura or Lexus.

The smartest used car lease purchases are for later model year cars, two-to-three-years old and still under warranty, or that offer extended warranties. Otherwise, you are responsible for costly repairs on a car you don’t own. Keep in mind auto insurance is often more expensive for leased cars, so make sure to get a quote from your insurer and factor it into your budget.