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LendingTree is compensated by companies on this site and this compensation may impact how and where offers appear on this site (such as the order). LendingTree does not include all lenders, savings products, or loan options available in the marketplace.

Yes, You Can Lease a Used Car — Here’s How to Do It

Updated on:
Content was accurate at the time of publication.

Is it a good idea? Sometimes. You might get a lower monthly payment than if you were buying a used car, but you’ll face mileage limits and other issues common to all leased cars.

Also, many dealerships don’t want the hassle of leasing a used car, so these deals can be a little hard to find.

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Key takeaways

  • You can lease a used car, but you may have to shop around to find this option.
  • Leasing a used car may get you low payments, though there will still be mileage limits and other downsides.
  • There are additional ways to get a used car, such as a lease swap or even a purchase.

One option for leasing a used car is to find a certified pre-owned (CPO) vehicle from a dealer. With a CPO car, you can have some sense of comfort knowing that the vehicle has gone through an inspection and been found to have no major defects.

Prices may be higher than you could find with a non-certified used car, but you’ll receive certification that the car has been inspected. Once you’ve found the CPO car that you want, the leasing process is similar to as if it were a new car.

Another option is to take over an existing lease. You’ll usually need to get the written permission of the original lender/dealer, but if approved, you can simply continue paying the lease according to the original terms.

Buying someone else’s lease has the added benefit of avoiding any down payment or acquisition fees.

 Used-car leasing vs. new-car leasing

When you lease a car, you’re basically paying the cost of the car’s depreciation over the course of your lease.

Since new cars depreciate much faster than used ones, the cost of a new-car lease is usually much higher.

Leasing a car, whether new or used, is very different from purchasing one.

You’ll still need to worry about keeping the car in good condition and under your mileage limit if you intend to return it to the dealer at lease end. You may also have to foot the bill if any maintenance costs fall outside the warranty period.

But you could save a bundle compared to purchasing or leasing a new car, and buying the vehicle at the end of the lease may be more manageable.

Pros and cons of leasing a used car

ProsCons
 Lower monthly payments than for buying

 May be affordable to buy the used car at the end of the lease

 Insurance may be more affordable since the car is worth less
 With any used car, you might not get the latest technology

 It’s a lease, so there’s a mileage limitation

 You’ll still need good credit

1. Find a dealer that offers it

Your best bet for finding a used-car lease may be a dealer that offers CPO vehicles.

They may have a wider variety of available cars than at an online marketplace, particularly if you already know the type of car you want. A Subaru dealer, for example, is more likely to have a variety of used Subarus than just a random internet search.

2. Negotiate your best deal

A car lease has many parts that can be negotiated. Among the most important is the “money factor,” which is like the interest rate on a purchase loan. The lower you can negotiate down the money factor, the less you’ll pay on a monthly basis. You can also bargain to get a better residual value for the car and lower mileage limitations.

3. Decide on a warranty

Even with a used car, you will likely still have at least a couple of years of the original manufacturer’s warranty when you start the lease. But it’s also very possible that the warranty will expire before the lease ends.

As part of your negotiations, you might ask for the dealer to throw in an extended warranty that will last for your entire lease term. If you can’t get that concession, you might consider paying for the additional coverage.

4. Consider other add-ons

If you’re looking for a particular dealer add-ons, such as paint protection or maintenance contracts, see if you can negotiate getting them for free.

If not, just be sure not to overpay for extras on a car that you might return to the dealer anyway in just a few years. Most of these add-ons might not be very necessary.

5. Understand your obligations

While you’re busy thinking about all the money you’re saving on a used-car lease, remember that you have many of the same obligations that apply to new-car leases.

You’ll have to remain within your negotiated mileage limitations, you’ll have to keep overall wear-and-tear in check and you may be responsible for additional maintenance if the car is out of warranty.

You’ll also have to decide whether you want to buy the car at the end of your lease term or return it to the dealer, a process that can also include additional charges.

Whether you’re looking for a new or a used car, you have the option to buy or lease, although you may have to shop around for a used-car lease.

Each has its own set of requirements, costs and risks, and it’s important to match these characteristics with your needs as a customer. Here’s a quick overview of the differences.

Used-car leaseNew-car leaseLease swapUsed-car purchaseNew-car purchase
Cost$$$$ / $$$$$$$$$
RequirementsGood creditGood creditLow; credit qualification requiredDown payment, good creditDown payment, good credit
RisksCar may run out of warranty before end of leaseContinually leasing means never-ending car paymentsMust stick to original terms, be responsible for wear and tear (even from original owner)Car may not have been treated well by original ownerLong-term commitment to a single vehicle
Best forCustomers who want new cars every few years but don’t want to break the bankCustomers who like getting a new vehicle every two or three yearsLessors who want less paperwork and fewer upfront costsLong-term holders looking for a price breakLong-term holders that prefer the latest technology and long warranties