Can You Lease A Used Car?

There are a lot of factors that go into getting your next vehicle. After you decide on the type of vehicle you need and whether you want a used model or a new one, you then have to decide how you’re going to pay for it.

Because most of us don’t have the cash on hand to buy a vehicle outright, we need to rely on other methods. Two options are available to you if you’re financing the vehicle and leasing it. Below, we’ll outline how leasing a vehicle works and whether you can use this method to obtain your next used vehicle.

What Is a Car Lease?

shallow focus photo of person driving Honda car by emrecan arik is licensed with Unsplash License

A car lease is essentially an agreement with a dealership in which you “rent” a new vehicle for a few years. With a car lease, the customer agrees to pay monthly installments toward the depreciation value of the vehicle.

For example, if a vehicle is expected to lose about $3,600 in value over the course of a three-year loan from wear and tear, the customer would pay around $100 per month to lease the vehicle. At the end of the lease, the customer then typically has the option to either buy out the remaining value in the vehicle or return it to the dealership.

Leases are a popular option for people looking to get a new vehicle for a few reasons. First, because you’re only paying toward the depreciation, the monthly payments are often a lot lower compared to financing the vehicle. In addition, vehicle leases are typically only available on new vehicles, meaning the customer is getting the latest model possible. Once the lease is up, they can take out a new lease on a newer model, ensuring they’re always driving something relatively new.

Can You Lease a Used Car?

While leases are typically used for a brand-new car, this isn’t always the case. Some dealerships allow you to take out a lease on a used vehicle. When you take out a lease on a used vehicle, you’re getting the same benefits of a lease in that you can have lower monthly payments and will return the car in a few years.

However, because the value of a used vehicle is lower than that of a new one, this in turn makes leasing a used vehicle more affordable than leasing a new one. To learn if a particular dealership offers leases on used cars, you should contact their lease and trade-in center. You can also always keep a lookout for lease deals that a dealership may offer.

What Is a Certified Pre-Owned Vehicle?

When dealerships offer leasing on a used vehicle, it’s often a certified pre-owned (CPO) vehicle. A CPO is a vehicle that’s gone through an extensive inspection process and met certain manufacturer requirements to ensure it’s of the highest quality. One common requirement is coming in under a certain number of miles. Placing these restrictions on eligible cars ensures that CPO vehicles are still relatively new and don’t have much wear and tear.

Because these vehicles are still somewhat new, some dealerships offer leases. A lease on one of these vehicles would allow you to drive it for a few years at a reduced cost, after which time you would return it to the dealership or buy out the rest of the value.

Benefits of Buying a Used Car Instead of Leasing

While there are some great benefits of leasing a used car, there are also some advantages of buying one instead. One thing you’ll want to think about is whether you’re making a long-term investment. When you lease a vehicle, and return it for another lease at the end of the term, you’re always going to face monthly payments.

When you finance a used car, on the other hand, you can eventually pay off the loan. Once you do, you won’t have to worry about monthly payments. And, as long as you have taken care of your vehicle, you can often drive it for many years to come without a car payment, which can significantly improve your financial situation.

Another benefit of buying a used car is that you have more options available to you. Many used vehicles aren’t available for lease, which reduces how many cars you can explore. By deciding to finance, you not only have more makes and models available to you, but you can also find similar vehicles with a range of prices depending on their histories, making it easier to find one that fits your budget.

What To Look For in Your Next Used Vehicle

Once you decide that you want to get a used vehicle, there are a few factors you’ll want to consider to ensure you get the right one. First, make sure the models you explore fit your needs. A family of six likely has different needs than a college student commuting on the weekends. Make sure the used vehicle has enough space for your needs along with your preferred features.

After that, you’ll want to gather some basic information about the vehicle. Find out when it was manufactured and how many miles it has. Typically, older and more mileage means more wear and tear but also a lower price. You’ll have to think about your preferred preference between value and longevity based on your situation.

Finally, learn more about the history of the vehicle. Make sure it has a clean history report, including no serious accidents and regular maintenance. This will help to ensure that there are no significant underlying problems with the vehicle that you’ll need to repair shortly after buying it. If you can keep these few basic factors in mind, you should have an easier time finding an affordable and reliable used vehicle.

Explore Used Models in Cincinnati Today

If you’re in the Cincinnati, Ohio, area, and you’re interested in getting a used model, make your first visit to Performance Kings Honda. We always have a wide range of used vehicles available from multiple manufacturers, with more models coming in all the time. You can easily browse our used inventory online today to see what we have in stock. Once you see something you like, contact us to schedule a visit to our dealership.