Can You Lease a Used Car? Your Guide to Used Car Leasing: Leasing a used car (often a certified pre-owned, or CPO, vehicle) is indeed possible – though it’s much less common than leasing new modelsedmunds.com. The process is very similar to a new-car lease: the finance company assigns a residual value to the car and you pay the difference over the term. Because a lightly-used CPO car has a lower sales price and slower depreciation than a brand-new one, monthly lease payments tend to be loweredmunds.com. In fact, as Edmunds explains, one can “lease a slightly used version of the new car you’ve had your eye on and save yourself thousands of dollars in the process”edmunds.com. Most shoppers don’t even realize this is an option – used-car leases aren’t heavily advertised, and many dealers may not think to offer themedmunds.com. But if you do the legwork, yes – you can lease a used car, and often at a much lower cost than a comparable new lease.
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Leasing a certified pre-owned (CPO) vehicle works much like leasing new. Since it’s a used car, the purchase price is lower and depreciation slower, often yielding a lower monthly paymentedmunds.comedmunds.com.
How Used Car Leasing Works
Used-car leasing typically uses certified pre-owned (CPO) vehicles – late-model cars that have passed a thorough inspection and come with extended warrantiescars.comedmunds.com. Most manufacturers cap CPO eligibility at around 5–6 years old or 80–85,000 milesedmunds.com. When you lease a used car, you negotiate a selling price (often the dealer’s CPO price), and the lender (usually the automaker’s captive finance company, like Toyota Financial or Honda Finance) calculates your monthly payment by subtracting the car’s residual value from its priceedmunds.comedmunds.com. Just as with a new lease, you’ll also pay taxes and fees and possibly a down payment.
Because used cars have already gone through their steepest depreciation, they lose value more slowly, which helps keep lease payments down. Edmunds notes that even though the interest (money factor) on a used lease is higher than on a new one, “a CPO vehicle has a lower selling price than its new-car counterpart,” so the combination of price and slower depreciation “combine to produce a lower monthly lease payment”edmunds.com. At lease-end, you simply return the car or buy it, just like a new lease.
One thing to keep in mind: unlike new-car leasing, used-car leasing is a niche market. Cars.com reports that only about 8.5% of all auto leases are on used vehiclescars.com. That means you may have to call around to find a dealer or finance company willing to do it. Always ask explicitly if a specific CPO model can be leased, and don’t be surprised if the salesperson needs to check with a manager.
Who Offers Used Car Leases?
Most CPO leasing programs are offered quietly through franchised dealerships and the manufacturers’ finance arms. In fact, major automakers often provide lease support on certified used cars, but they don’t advertise it as boldly as new-vehicle leasescars.comcars.com. For example:
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Toyota – Toyota Financial will lease certified Toyotas up to three model years old, with terms up to 48–60 months depending on agecars.comcars.com.
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Honda/Acura – Honda’s certified leasing program covers CPO Hondas and Acuras up to 5–6 years oldcars.com. Honda even highlights that CPO leases often have lower monthly payments than financing hondacertified.com.
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BMW – BMW Financial Services leases CPO BMWs from the current and prior four model yearscars.com. Gap insurance is included, and you can buy the car at lease-end.
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Lexus – Lexus offers CPO leases on certain models (ES, GX, NX, RX) up to model year 2020–2024, with mileage limitscars.com.
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Other Brands – According to industry data, many brands allow CPO leasing. A dealer finance guide notes that you can lease certified vehicles from Acura, Audi, BMW, Honda, Lexus, Toyota and many moremackemotors.com. (Cars.com’s survey also lists Buick, Cadillac, Chevrolet, Infiniti, Porsche, Rolls-Royce and others as having active CPO lease programscars.comcars.com.)
In contrast, some brands have no formal used-car lease program. For example, Ford, Subaru, and a few others currently offer no CPO lease dealscars.comcars.com. In those cases, you might still find a loaner or informal lease from a dealer or finance company, but it won’t be a factory-backed deal.
Dealership vs Online Platforms: Traditional dealerships with certified pre-owned inventory are the main places to look for a used lease. Online used-car retailers like Carvana and Vroom mainly sell cars with financing options – they don’t have lease contracts. (In fact, Vroom suspended operations in early 2024.) Carvana, for example, advertises a 7-day return and used-car financing, and they even work with lease buyouts, but you can’t start a lease through Carvana【19†】. If you want a “lease deal,” your best bets are manufacturer CPO programs at dealers or third-party lease transfers. Services like Swapalease and LeaseTrader let you take over someone else’s lease on a used caredmunds.comcars.com – effectively getting a second-hand lease deal from a private owner.
Pros and Cons of Leasing a Used Car
Leasing a used or certified pre-owned car comes with both advantages and drawbacks. Consider these points:
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Pros:
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Lower monthly payments: Because used/CPO cars cost less and depreciate slower, your lease payment is usually lower than a new-vehicle lease on the same modeledmunds.com. (Edmunds highlights that the lower selling price and reduced depreciation curve “combine to produce a lower monthly lease payment” for CPO vehiclesedmunds.com.)
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Access to luxury brands: Leasing a CPO makes expensive models (BMW, Mercedes, Lexus, etc.) more affordable. Edmunds notes that CPO leasing “is significantly less expensive than leasing a brand-new one,” making luxury brands more accessibleedmunds.com.
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Option to buy-out cheaply: Since CPO cars have lower residuals (they’re worth less new), a used lease buyout is often a bargain. You could drive the car for a few years and then purchase it below current market priceedmunds.com.
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Extended warranties: CPO vehicles usually come with manufacturer warranties (often 7-year/100,000-mile powertrain coverage), which can last through much of a typical leaseedmunds.com. This can give extra confidence if you plan to buy the car afterward.
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Lower insurance: Insuring a less-expensive used car can cost slightly less, since premiums are partly based on valueedmunds.com.
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Stability of depreciation: Much of the depreciation has already happened, so you “pay a more stable depreciation rate” in a used leasexorvex.com.
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Cons:
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Higher finance costs: Used-car leases carry higher money factors (interest rates) than new-car leases. That means you might pay more in interest over the lease termedmunds.com.
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Maintenance and repairs: An older car will likely need service sooner. Mileage limits are still in place, and the manufacturer’s warranty may have worn off (outside of powertrain). Plan for potential maintenance costs that you wouldn’t have with a new caredmunds.com.
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Fewer features: Used cars may lack the latest tech or safety features found on current models. Be sure the CPO model has the options you want, because you can’t always get every color or trim in the used inventoryedmunds.com.
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Condition issues: Even certified, a used car is not “fresh.” Expect some wear – small scratches, stains or dings are common. You won’t have that new-car smell or zero wearedmunds.com.
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Limited availability: Used leases are rare. You often have to hunt them down. Not every dealer offers them, and sales staff may be unfamiliar with the processedmunds.comedmunds.com. It can take patience to find a willing dealership and vehicle.
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In short, leasing used/CPO can save you money upfront, but it demands more effort and sometimes entails higher upkeep costs. Edmunds points out that aggressive new-car incentives or rebates can sometimes make a new lease deal more attractive than a used oneedmunds.com. If a new model has rock-bottom pricing (0% financing, big cash back, etc.), it may beat the savings of a used lease. However, if the new car isn’t on sale, leasing a nearly-new CPO version can put you in the same model for much less cashedmunds.com.
Certified Pre-Owned (CPO) Leasing vs. Standard Used Leasing
Most used car leases you’ll find are CPO leases backed by automakers. “Certified pre-owned” means the car has been inspected and approved by the manufacturer (Toyota, Honda, BMW, etc.), often with an extended warranty and extra benefitscars.com. When leasing a CPO, you get those manufacturer guarantees: for example, GAP insurance is often included and the car still carries many factory protectionscars.comcars.com. Honda’s CPO program explicitly promises “premium inventory” and perks like guaranteed asset protection (GAP) and warranty coveragehondacertified.comhondacertified.com. Toyota’s certified lease program similarly reins in used-car uncertainty by inspecting the vehicle and offering factory finance.
In contrast, standard used car leasing (non-CPO) is mostly limited. It might come from an independent lender, a small dealer’s own program, or a finance company. These deals typically lack factory warranties or formal programs. Cars.com notes that if no automaker lease program exists, “dealers, some banks and other third parties will write leases on used vehicles”cars.com. You can also simply take over someone else’s lease via a lease-transfer site. But beware: a non-certified used lease often comes without the inspection and warranty of a CPO.
Put plainly: CPO leasing is like leasing new, just older – it’s structured, approved, and relatively safe. Non-CPO leasing is ad hoc and riskier, and far less common in the U.S. If you have the choice, a CPO lease is the trusted route (many even say it’s better than leasing a plain used car).
Steps to Lease a Used Car
If you’re ready to pursue a used/CPO lease, here’s a step-by-step guide:
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Research Eligibility: Identify a target car and check manufacturer criteria. Typically, certified models up to 5–6 years old (and under ~85K miles) qualify for leasingedmunds.com. Non-certified older cars usually can’t be leased through automaker channels.
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Contact the Brand’s Finance Arm: Call the automaker’s financing company (for example, Toyota Financial, Honda Finance, BMW FS) and ask if they offer CPO leases on that modeledmunds.com. Confirm basic terms: maximum vehicle age, mileage, and potential money factor.
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Get New-Car Quote for Comparison: Before doing the used deal, get a lease quote for a comparable new model. This gives you a benchmark. If the new-vehicle lease is much cheaper (due to incentives), reconsider. Edmunds advises having a new-lease quote “in hand” so you can compare and see if the used lease truly savesedmunds.com.
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Find Certified Inventory: Search for the exact CPO vehicle at dealerships. Use manufacturer websites or aggregator tools to find certified models. Be flexible on features and color, since used stock is limited. Focus on certified listings to ensure eligibility.
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Call Dealerships: Once you find one or more desirable CPO cars, call the dealer’s sales or internet department. Ask them directly: “Can I lease this certified pre-owned [make/model]?” If the answer is “No” or “We don’t lease used,” ask to speak with a manager. Many salespeople don’t know used leasing is possibleedmunds.com. Persevere – some dealers are willing, especially if they want to move CPO inventory.
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Negotiate the Deal: If a dealer offers to lease a used car, negotiate the price of the car just as if you were buying it. Then let the dealer (or lender) offer critical numbers: how much for a residual value, and what is the money factor (basically an interest rate). Don’t forget to get a complete quote: capitalized cost (purchase price), residual, term, mileage allowance and total monthly payment including taxes and fees. Edmunds recommends treating it as if you were negotiating a new lease: Haggle over the price, verify all the fees and do some math.
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Review and Sign: Carefully review the lease contract. Confirm what’s included: GAP insurance (often included in CPO leasescars.com), warranty coverage, and any extra fees. If everything looks good, sign and enjoy your used car! Remember, you’ll return it at lease-end or choose to buy it out.
FAQ: Common Questions About Used Car Leasing
Q: Can I lease any used car?
Generally no – leasing is usually limited to qualified CPO models. Dealers almost always require the vehicle to meet the maker’s CPO standards (age, mileage, condition)edmunds.com. Off-brand used cars or older models typically cannot be leased through official channels. Your best bet is a late-model certified car.
Q: Do manufacturers lease certified pre-owned cars?
Yes. Many brands allow leases on their certified pre-owned vehicles. For example, Honda’s certified program covers cars up to 6 years oldhondacertified.com, Toyota up to 3 years oldcars.com, and BMW up to 4 years oldcars.com. These manufacturer-backed programs mean your lease is done through the brand’s finance arm, often with factory warranties and benefits.
Q: Are lease payments lower on used cars?
Typically they are. Because used cars cost less and depreciate more slowly, your monthly payment on a used lease is usually lower than a new-lease payment on the same modeledmunds.com. Edmunds points out that you “avoid the steep depreciation curve of a new car,” yielding a lower payment even if the interest rate is higheredmunds.com. However, always compare to new-vehicle offers – sometimes a strong new-lease deal can undercut a used oneedmunds.com.
Q: What are “lease second-hand car deals”?
This phrase usually refers to taking over or transferring someone else’s lease on a used car. You can find such deals on sites like Swapalease or LeaseTraderedmunds.comcars.com, where sellers pay you to assume their remaining lease payments. Dealerships sometimes advertise specials on used/CPO leases, but these are rare. In practice, a “second-hand lease deal” often means a lease takeover, rather than a new contract.
Q: Can I lease a used car with bad credit?
Leasing in general requires good credit, and used leases are no exception. If you have less-than-perfect credit, your options are limited. Manufacturers’ captive leases on used cars usually require decent scores. You might find independent dealers offering subprime loans or in-house leases on used cars, but these tend to have high fees and stricter terms. Always read the fine print: some “used lease” offers from buy-here-pay-here lots might be better thought of as high-interest loans.
Q: What happens at the end of a used car lease?
Just like a new lease, you return the car or buy it. With a used lease you might be more tempted to buy it – after all, the residual was set lower than a new car’s. You should estimate the buyout price early and compare it to the market value and any additional warranty costs before deciding.
Summary and Next Steps
Yes, you can lease a used (pre-owned) car – especially certified pre-owned models from brands like Toyota, Honda, BMW and others. Used leases are structured like new leases, often offering lower monthly payments thanks to the car’s reduced price and depreciationedmunds.comedmunds.com. The trade-off is higher interest rates, potential upkeep on the older vehicle, and the challenge of finding a dealership that will do the deal. Make sure to shop multiple dealers, compare offers, and use the steps above to negotiate effectively.
Leasing a CPO car can be a savvy way to get a luxury or higher-end model for less money, but it isn’t a “no-brainer” solution. Always weigh the pros and cons for your situation, and remember to compare used vs. new lease deals (sometimes special new-lease incentives make the new option more attractiveedmunds.com).
Ready to explore used car lease options? Talk to a local dealer’s finance center about certified pre-owned leasing programs. You can also browse lease-assumption marketplaces if you’re open to takeover deals. Either way, armed with the information here and the steps above, you’ll be prepared to answer the question: Yes, you can lease a used car – and potentially save money doing it!
