Can You Lease a Used Car?

Are you looking for a new ride to upgrade your Traverse City commute but are on a tight budget? If so, a used or certified pre-owned vehicle is an excellent option. But if you’re not quite ready to invest in purchasing a car outright, leasing a used car might be ideal! Are you wondering, “Can you lease a used car?” The answer is yes!

Used car leasing is available through many auto manufacturers but is not typically advertised as much as a new car lease. In the helpful guide below from Serra Toyota of Traverse City, learn all there is to know about leasing a used car and contact us with any questions.

Used Car Leasing Facts

Most manufacturers only allow their certified pre-owned vehicles to be leased. As a general rule, the CPO vehicles available for a lease must be under four model years old and have under 48,000 miles on their odometer. If you want to lease a certified pre-owned vehicle, you’ll need to visit a brand-authorized dealership like Serra Toyota of Traverse City, because franchised dealerships are the only place to buy a certified pre-owned vehicle.

The National Automobile Dealers Association (NADA) releases a list of manufacturers that commonly offer CPO leasing, including Toyota, Volvo, Acura, Audi, BMW, Lincoln, Chrysler, Dodge, Jeep, Honda, Ferrari, FIAT, Hyundai, INFINITI, Kia, Lexus, Mazda, Mercedes-Benz, MINI, Nissan, Mitsubishi, Porsche, RAM, and Volkswagen.

How Does Used Car Leasing Work?

The process of leasing a certified pre-owned vehicle is similar to leasing a new vehicle. The difference between the sale price of the vehicle and what its estimated value will be at the end of the lease term determines your monthly lease payment. Good news! Used cars around Cadillac and Manistee depreciate more slowly than new cars, so the difference between the sale price and the estimated lease-end value should be less, and your monthly payments will be lower.

Like new car leasing, you will need to return your CPO lease to the dealership when your lease ends. You must comply with stipulated mileage limits and keep the vehicle in like-new condition.

Benefits of Used Car Leasing

• Monthly Payment Amount: You can lease a used car for a lower monthly payment than a new vehicle.
• Potential for Lease Buyout: The estimated value of a used car will be lower at the end of the lease term compared to a new vehicle, which may make a lease buyout more affordable if that’s something you want to do.
• Lower Insurance Rates: You can likely qualify for lower car insurance rates with a CPO lease, as insurance costs are based partially on the car’s value.

Finance or Lease a New or Used Car From Serra Toyota of Traverse City

Now that we’ve answered the question, “Can you lease a used car?” feel free to contact the finance specialists at Serra Toyota of Traverse City for more information on how the process works at our dealership near Glen Arbor. We are here to help with all your automotive needs!