Thinking about getting a car on lease, and unsure whether you can lease a used car from a dealership? You may be surprised by the answer - yes, you can! The practice of leasing a used car is still relatively rare among many car buyers. In this guide, we'll answer the question: Can you lease a used car from a dealership? We will take a closer look at how used car leasing works, the good and the bad aspects of doing so, and how to get started with your search.

Renting a used car could make leasing as affordable as buying. But before you jump into this option, there is a lot to know so that you can make sure it’s the best choice for your particular situation.

Looking for the best dealerships near you? Check out our Ultimate Guide to the Top 10 Car Dealer in Jacksonville.

How Does Leasing A Used Car Work?

When you lease a used car, your deal will be structured much the way a new-car lease is. Its age, residual value, and how quickly it depreciates are the main differences. Here is a brief guide to how they operate:

1. Residual Value: The residual value is the car’s estimated worth at the end of the lease. Used cars have a lower residual value than new cars, making the lease cheaper
2. Money Factor: Just like a new car lease, the leasing company will assign a money factor to your used car lease. However, the money factor is often higher for used cars than for new ones, which can make the lease more expensive. But the lower upfront cost of a used car can offset this higher rate, making it more affordable in the long run.
3. Eligible Cars: Typically, used cars available for lease from a dealership are certified pre-owned (CPO) vehicles. These vehicles typically are under 6 years old and have fewer than 85,000 miles. But the particular standards can differ from maker to maker, and even from dealer to dealer.

Can You Lease a Used Car from Any Dealership?

Many dealers don’t offer them, but more are beginning to. Whether you can lease a used car will vary by dealership, vehicle, and auto manufacturer, depending on leasing restrictions. Again, you won’t see very many mileage limitations or lease deals on used taxis these days, but it is still possible to do it, and here’s how:

1. Certified Pre-Owned Vehicles: Most used car leases are for certified pre-owned cars. These cars are typically under 6 years old and undergo a quality inspection. They also come with warranties that cover most major systems.
2. Limited Availability: Used car leases are not offered by every dealer, and not all used cars are eligible for leasing. However, some dealers offer specific models or years that qualify for leasing. It's essential to ask the dealer if they offer used car leases or to check the manufacturer's financing programs.
3. Higher Interest Rates: Although the cost to lease a used car may be less expensive than leasing a new one, interest rates on used cars are typically higher than those offered for new car leases. This is because the rate at which a used car depreciates is higher, and also because of increased risk.

Looking for a Quality Used Car Lease? Visit Merit Autos

At Merit Autos, we offer a range of quality pre-owned cars, trucks, and SUVs that you can lease with confidence. If you're looking for a used car lease with low monthly payments and flexible terms, we’ve got you covered.

Our certified pre-owned vehicles are inspected for quality, and we offer financing options tailored to your needs. Whether you're looking to lease a used car or need help with financing, our team is here to guide you every step of the way. Visit Merit Autos today, and let us make your car leasing experience hassle-free!

How to Lease a Used Car, Step by Step

If you’re thinking about leasing a used car, here’s a step-by-step guide to help you through the process:

Step 1: Identify the Best Dealership

First, you’ll want to look for a dealership that provides used car leases. This isn’t an offer that all dealers advertise, so begin by calling or reviewing the dealer’s website. Be ready to ask them about certified pre-owned cars.

Step 2: New vs. Used Car Lease Terms Comparison

As with buying, whether leasing a used car is a good deal depends on the lease terms for a used car relative to those of new cars. Get a lease quote for new and used cars from the same dealer so you can compare monthly payments and other fees.

Step 3: Negotiate the Lease Terms

Once you have a vehicle you want, negotiate the terms with the lease. Be sure to ask about:

• Residual value: The estimated value of the car at the end of the lease.

• Money factor: The interest rate to be used when factoring a lease.

• Mileage limits: Used-car leases typically restrict the number of miles you can drive, but many limit mileage even more than with a new-car lease.

• Length of lease: Used car leases are typically shorter than new-car leases (24 to 36 months is common).

Step 4: Review the Terms and Sign the Lease

Before signing the lease, make sure you understand all the terms, including fees, maintenance requirements, and any restrictions on the car's condition.

Pros of Leasing a Used Car

Leasing a used car comes with several advantages:

• Smaller Monthly Payments: Because a car’s rate of depreciation has decreased, the monthly payments on a used car are typically lower than on a new one.

• Drive a Newer Car for Less: When you lease used, you can drive a clean, newer used vehicle with subscriptions to popular automotive technology features at much lower costs compared to leasing new.

• Avoid Rapid Depreciation: New vehicles take their greatest loss in value during the first few years of ownership, something that used cars have already experienced. You can skip this by leasing a used car.

Affordable Luxury: Leasing a used luxury car, like a BMW or Lexus, may also be much more affordable than leasing new.

Cons of Leasing a Used Car

While there are plenty of benefits, there are also some downsides to leasing a used car:

• Higher Interest Rates: The money factor, or interest rate, on used car leases is higher than it is for new cars, which leads to a higher cost of the lease.

• Shorter Warranties: Used cars may offer less warranty coverage than new ones, so ensure you’re buying a certified pre-owned vehicle if warranties are important to you.

Not Widely Available: Leases on used cars are still uncommon, meaning you may need to do some looking around to find a dealership in your area that offers them.

Other Used Car Lease Options

As well as leasing directly from a dealership, you may want to consider the following options:

• Lease Transfer: Websites like Swapalease and LeaseTrader are among the sites that let you hop into someone else’s car lease. If someone is trying to get out of their lease early, this can make for a relatively inexpensive alternative.

• Third-Party Leases: A few independent dealers or even leasing companies may offer used-car leases. Read all the terms and make sure the car is in working condition.

So, can you lease a used car from a dealer? The answer is yes! Although not as common as leasing a new car, leasing a used car is more affordable and grants you access to newer models. By getting the process, comparing lease options, and dealing with a franchise that is good for used car leases, you can drive off in just the right vehicle.

If you are interested in learning more about used car leasing and would like to get the process started, stop by Merit Autos today and check our inventory of CPO vehicles so that you can get your lease with us. With us, you can get behind the wheel of the car of your dreams – without any hassle!