Yes, you can lease a used car. It is less common than leasing new, and fewer lenders offer it, but the option exists and in the right situation it can make sense.

If you are new to leasing in general, how car leasing works covers the basics. This post is about what changes when the car is not new.

Who offers used car leases

Manufacturer certified pre owned programs. Some brands' finance arms offer leases on their own certified pre owned cars, usually recent, low mileage vehicles coming back from earlier leases. Availability varies by brand and changes over time.

Banks and independent leasing companies. Some lenders will lease a used car that meets their age and mileage limits.

Leasing a car that someone else has started. Strictly this is a lease transfer rather than a used car lease, but it is often the simplest way to lease a car that is not new, and the remaining term is usually short.

How the math is different

A lease charges you for the depreciation you use plus a finance charge. With a used car, both of those shift.

Depreciation is lower. A new car loses a large share of its value in the first year or two. A used car has already taken that hit, so the value it loses during your lease can be smaller.

The money factor is often higher. Lenders tend to price used car leases at higher rates than new ones, which can eat into the depreciation saving. See money factor on a car lease.

Incentives are rarer. New car leases are frequently subsidised by the manufacturer with lease cash or reduced rates. Used car leases usually are not, and on popular models that subsidy is often what makes the new car lease cheap.

The result: a used car lease is not automatically cheaper. Compare it against a new car lease on a model with strong incentives, because the new one sometimes wins.

What else changes

Shorter terms. Commonly 24 to 36 months, sometimes less, because the lender does not want the car too old or too high mileage by the end.

Warranty coverage. Certified pre owned cars usually carry an extended warranty. Check that it runs for the whole lease, so you are not paying for repairs on a car you do not own.

Condition at return. You are still judged against the lender's wear and tear standards, on a car that arrived with some history. Document its condition carefully on day one.

Who it suits

  • Drivers who want a premium model at a lower payment and do not mind it being a year or two old.
  • People who want a short commitment without the high cost of a short new car lease. See short term car leases.
  • Anyone who has found a specific certified car they like, with a lease program behind it.

Who it does not suit

  • Drivers who want the newest technology and safety features.
  • Anyone driving high mileage, since used leases often carry tighter mileage limits.
  • Shoppers who could get a heavily incentivised new car lease for a similar payment, which is more often than people expect.

The short version

Used car leases exist, mainly through certified pre owned programs and some independent lenders. Depreciation is lower, but rates tend to be higher and incentives rarer, so compare against a new car lease before deciding.

If you want both options priced side by side, tell us what you are looking at and we will run the numbers.