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Can You Lease a Used Car?

Can You Lease a Used Car?

Car leasing is a viable alternative to purchasing a new vehicle outright. For drivers that do not put a lot of kilometres on their odometer, want the latest and greatest car every few years, and do not want to worry about repair and maintenance issues, leasing is the best option.


However, leasing a brand new car is not possible for everyone because of the high monthly costs. However, it is possible to save money by leasing a used car.


What Used Cars Can be Leased?



While used car leasing is available in Canada, it is limited to a small number of specialty and luxury brand dealerships. This is ideal for drivers who want a luxury car at a lower price, but it does not work for drivers wanting something older and less expensive.


What Makes Leasing a Used Car Worth It?



There are several advantages to leasing a used car:


• Lower Monthly Payments. Since the biggest depreciation hit takes place once a brand-new car leaves the lot, drivers leasing used vehicles do not have to worry about that. Instead, you only pay for the depreciation of the car during your use of it, which means that your lease payments will be lower than if you were leasing a brand-new vehicle or buying a used one.


• More Choices. Leases provide you with more options once the lease is over. You can give the car back with no additional costs (as long as you stayed within the parameters of your lease) or choose to purchase the car if it still suited your needs.


• More Car for Your Money. Used car leases help many people afford a luxury car even if their budget does not support the purchase of it. Many drivers can lease a pre-owned luxury vehicle (Audi, BMW, Mercedes, and the like) for hundreds less than if they were leasing a new one.


What Should Drivers Watch for With Used Car Leases?



There are several drawbacks to leasing a used car, including the difficulty in finding a dealership that offers them. Sometimes it is easier to find a lease takeover, which is similar in nature to a used car lease but often for a shorter time period.


Some of the drawbacks of a used car lease include not having any equity, early termination fees, and wear and tear penalties when returning the car.


What About a Certified Pre-Owned Lease?



Certified pre-owned cars are vehicles that have undergone rigorous inspections and are offered for sale or lease by a dealership with additional warranty coverage. In the case of a certified pre-owned lease, the lease usually works through the manufacturer's own finance team, which typically offers lower rates and monthly payments.


Why Choose Used Car Leasing Over Used Car Financing



Used car leasing is a good idea for people who want or need to move on to a new car after a short period. Leasing offers an additional option for those with bad or no credit, who need a specific type of vehicle, and those who want to pay as little out of pocket as possible.

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