Can You Lease a Used Car?

Looking to make an upgrade to your Phoenix commute? If you’re shopping with a tight budget in mind, used or certified pre-owned are excellent options to consider. But maybe you’re not quite ready to invest in buying a car outright at the moment. You might wonder, “Can you lease a used car?” Used car leasing is offered by many manufacturers, though it is typically not advertised as much as new car leasing. In the guide below, Bill Luke Tempe covers everything you should know about leasing a used car in Tempe.

Used Car Leasing Facts

Most manufacturers only allow certified pre-owned vehicles to be leased. As a general rule, the CPO vehicles available for leasing must be fewer than 4 model years old and have less than 48,000 miles on their odometer. This means that if you want to lease a certified used vehicle, you’ll need to visit a franchised dealership like those that are a part of Bill Luke Tempe, as it’s only at franchised dealerships where you can find certified pre-owned vehicles.

According to the National Automobile Dealers Association (NADA), the list of manufacturers which are said to offer CPO leasing includes Acura, Audi, BMW, Chrysler, Dodge, Ferrari, FIAT, Honda, Hyundai, INFINITI, Jeep, Kia, Lexus, Lincoln, Mazda, Mercedes-Benz, MINI, Mitsubishi, Nissan, Porsche, RAM, Toyota, Volkswagen, and Volvo.

How Does Used Car Leasing Work?

Leasing a certified used vehicle follows a pretty similar process to new vehicle leases. The difference between the sale price of the vehicle and its estimated value at lease-end will determine the monthly lease payment.

This poses a benefit for Chandler shoppers –– used cars depreciate more slowly than new cars, so the difference between the sale price and estimated lease-end value will be smaller and your monthly payments will be lower.

Like new car leasing, when your lease ends you will need to return your CPO lease to the dealership. There will also be mileage limits you will need to adhere to.

Benefits of a Used Car Lease

• Monthly Payment Amount: As we noted above, you can lease a used car for a lower monthly amount than you would a new car.
• Potential for Lease Buyout: The estimated value of a used vehicle will be lower at lease-end when compared to a new vehicle, which could make a lease buyout more affordable when you reach the end of your lease term.
• Lower Insurance Rates: There’s a good chance you can get a lower car insurance rate with a CPO lease, as insurance costs are partially based on the car’s value.

Contact Us With Questions

Have lingering questions about used car leasing? Contact us for more information on how the process works at our dealership serving the greater Queen Creek area. Our friendly finance team is here to help you secure the most advantageous car-buying solution for your needs!