If you've been shopping around and wondering, can you lease a used car, you're definitely not alone. Most people assume leasing only applies to shiny new vehicles fresh off the truck, but that's not the whole story. At United Auto Sales of Utica, we get this question all the time from folks who love the lower monthly payments that come with leasing but don't necessarily want to pay new car prices. So let's break it down in plain language and talk about what your options actually look like.
Yes, Used Car Leasing Is a Real Thing
The short answer to the question, "Can you lease a used car?" is yes. Used car leases do exist, however, it is not as common as new car leases. Some dealers and banks offer lease programs for used cars, usually only a few years old with low mileage. Used car leases work in essentially the same way as new car leases: the driver pays a fixed monthly sum for a fixed number of months and then, at the end of the lease, has the option of returning, buying, or re-leasing the vehicle.
Used cars can vary and not every vehicle is eligible, nor is every dealer going to offer this, so it's worth asking if it's something you're considering.
- Consumers may prefer leasing a used vehicle for various reasons, despite the car being pre-owned, used, or secondhand
- Lower monthly payments, compared to financing the same vehicle
- Can require less upfront cash in many cases
- The borrower has an option to walk away or upgrade
Leasing isn't always the best option, though. For example, if you drive a lot of miles in a year or one day want to own the car outright and not have car payments, you may want to consider financing instead. It really comes down to how you plan to use the car and how long you want to keep it.
Leasing Versus Financing a Used Vehicle
Think of these two ideas as two roads that lead to different destinations. Financing means you're working toward ownership. In a purchase, you build equity with every payment and own the car once the loan is paid off. Leasing is more like a long-term rental. Advantages are that you get all the use of the vehicle without the long-term commitment but do not build equity.
Our finance center can explain both options to you side by side, so there aren't any guesses. In some cases, the monthly difference between the two might be smaller than you think, while in other cases it will be a larger difference. Either way, once you see the numbers it is a lot easier to make the decision.
What to Ask Before You Sign Anything
Before you sign a used car lease, make sure you ask how the leasing company calculates the mileage, and what happens if you exceed the mileage allowance during the lease. Can I purchase the vehicle at the end of the lease? And what will the price be? What are the end-of-lease condition requirements of the car? The terms of these vary quite a bit from lease to lease, so don't be shy about asking for details.
We're Here to Walk You Through It
Every driver is different, and that's why we at United Auto Sales of Utica prefer to explain all the details in person. Whether you're comparing the terms and conditions of a lease or weighing your options between leasing and financing, our finance team is happy to lay out your options clearly.
Frequently Asked Questions
Ready to talk through your leasing and financing options?