How To Lease A Used Car: And When To Buy Instead

Used cars depreciate at a slower rate than new cars, making them an excellent choice if you want a low-cost lease. They’re harder to find, though, and limited used car inventory has further shrunk the market. In addition, you may not recoup the amount you spend on the down payment — which you won’t get back at lease end

Still, you could end up saving quite a bit each month. If you are in the market for newer vehicles that haven’t seen a lot of wear and tear, a used car lease could be right for you

3 steps to lease a used car

Leasing a used car is similar to leasing a new car. You’ll have to research the vehicle and negotiate with the dealer. But since they are rarer, there is a little more legwork involved in finding a good deal

1. Research lease options

Not every dealer offers leases on used cars. You are more likely to find leases on certified pre-owned (CPO) cars, which are generally only available at a franchise dealer. You will also want to call or email ahead of time to ensure the dealer sets up used car leases.

Do your research on recent models that you might want to lease. And, most importantly, comparison shop. Even if you aren’t buying the car, check what they are selling for on sites like Edmunds and Kelley Blue Book. This gives you a good starting point during negotiation

2. Negotiate with the dealer

Once you have found a dealer that offers used car leases and you have price shopped, it’s time to start negotiating. Like a new car lease, the cost of a used car lease is based on a money factor — similar to the interest rate on a loan.

You will be able to negotiate this along with mileage limits and residual value. The negotiation process is similar to buying a car. You want to ensure you’re getting a fair price on the overall cost, including fees, taxes and the money you are putting down

3. Pay attention to the contract

Your contract will include fees, mileage limits, what maintenance is or isn’t covered and a purchase option. Keep an eye out for any add-ons…

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