Can You Lease A Used Car? Your Questions Answered

Have you found yourself questioning – can you lease a used car? Are you perhaps thinking of leasing a used car and wondering where to begin? If so, then you come to the right place – welcome!

Consider this article as your guide to everything that you need to consider and learn when it comes to leasing a used car. We will answer all of your burning questions, such as “Where can you lease a used car?” and “Can you lease a used car with no money down?”. 

For those of you that are unsure, let’s first begin by answering the question: What is leasing a car?

Think of it as a long-term rental, as you will need to commit to paying a fixed-term fee for the use of the car. And contracts can restrict the number of miles you can travel. 

Can you lease a used car? Keep reading to find out!

Can I Lease A Used Car From A Dealer? 

Short answer – yes! And the process is relatively straightforward. As long as you do your research.

Take a look at the different dealers in your area (or a bit further out if you’re willing to travel!). And once you are happy make contact with them to discuss pricing. 

You can refine your search for the used car you would prefer, by seeking deals with a particular model. 

Or refine your searches by how much you’d be willing to spend or how long you wish the contact to last. Compare and contrast deals to discover what will work best for you. 

The price isn’t set in stone, and the dealer may be willing to negotiate with you. The company will ensure that the car is inspected and that it passes all of the necessary tests. 

This ensures that the car is not only legal to drive, but more importantly, safe to drive. It’s then over to you, as you will need to be credit checked. 

Another question that comes up often when it comes to thinking about can you lease a used car: Can you lease a used car with bad credit? Speaking generally, the answer is yes. Although it will mean that you will be faced with higher interest rates or a higher monthly cost. 

Of course, certain dealers may decide against leasing to you if you have bad credit, however, as it poses a risk to them. 

Once everything has been accepted you will need to sign a contract that stipulates you’ll pay the monthly fee that you have agreed upon with your dealer. 

Once the contract comes to an end, you will need to return the car to the company. If there is damage to the car you will need to pay up. Including if you have exceeded the agreed-upon mileage

Still questioning, can you lease a used car? Keep on reading!

Things To Look Out For 

Before you rush into signing a deal that appears too good to be true, there are three main things you might want to check:

  • Mileage
  • Hidden costs
  • The contract

Here’s a bit more about each one, and how important they are to consider when thinking about leasing a used car.

Milage

You should always check for yourself the number of miles the car has done. 

We would recommend avoiding very high mileage used cars, as this is arguably unlikely to be a good deal for you. 

The maximum mileage on the car should be 15,000 miles per year, anything exceeding this is best to avoid. 

For more information on this, check out our article on What Is Good Mileage For A Used Car?

Hidden Costs

You need to consider any repair or damage cost payments that you will be liable for.

Some used cars will come with a warranty, while others won’t. 

It’s essential that you know what you are getting yourself into. What’s more, when you sign on the dotted line any existing issues with the car will become your problem if not covered by the warranty. 

The Contract

Have a second pair of eyes look over the contract (and possibly car). Preferably someone who possesses a certain level of expertise/ knowledge on the subject.

 If this isn’t possible, allow a trusted friend or relative to read over the contract for any glaring issues. 

We would advise you to take your time and to read between the lines – make sure there are no add-on fees that were not previously discussed.

Some deals are falsely advertised online as used car leases, but they are in fact a Personal Contract Purchase (PCP). This deal comes with an optional extra monthly payment and is not considered a lease. 

Is It A Good Idea To Lease A Used Car? 

There’s no simple answer – it’s all about weighing up the pros and cons. 

Pros 

Affordability

Arguably the whole idea behind leasing a used car is that it should be less expensive than leasing a new one, due to the value and worth of the car.

Cover

You can be covered by the manufacturer’s warranty for the duration of the contract. Breakdown cover and road tax are included. Plus some dealers will throw in some extras as well, like servicing. 

Money-Saving

Mostly anyone can lease a used car, even with bad credit

Therefore, it’s good that this option is open to everyone. What’s more, if you can’t afford to buy a used car, then this is the next best option for you – spreading the cost over affordable, monthly payments

Less Worry

You don’t need to stress about the car depreciating in value as time goes on – you don’t own it, therefore it’s not your problem! 

Simplicity

The deal is simple, and this can give you confidence in the whole process of leasing a used car.  

Cons 

Ownership

You won’t officially own the car.

Mileage

You will be restricted in terms of mileage, and if you go over the agreed-upon limit you’ll have to pay. 

Generally speaking, you will need to pay an excess mileage charge of roughly 10p per mile. 

Damage

If you damage the car then you will face hefty payment fees to fix the problem.

Once It’s Gone, It’s Gone

This phrase applies to both your payments and the car. You will receive no payment if the car is eventually sold off. 

Extra Payments

Chances are you will likely have to pay the difference if the car is written off and the value of insurance is less than the dealer’s company. 

Final Thoughts 

So, there we have it! We hope that we have answered your question of can you lease a used car, and that you now feel more knowledgeable about the subject! 

Although leasing a used car is a simple process, there are definitely pros and cons to weigh up before you reach for the contract. 

We would definitely recommend that you spend some time doing your research. As you will thank yourself for it in the long run! 

After all, it’s everyone’s worst nightmare being tied to a payment plan that they aren’t happy with or that’s costing them more than they budgeted for. 

Of course, if you have the budget for it you could bypass leasing a used car and purchase one instead! 

If this sounds like something you would like to look into, then make sure that you check out us here at FairSquare

We have a great selection of used cars to buy, over 5,000 in fact! 

Simply head to our website to take a look at cars you can purchase via finance or upfront

There are plenty of filters you can use to find your dream car, such as Make, Model, Doors, Colour, Mileage, Age, and more.

We aim to make the process as easy and transparent as possible for you. 

Why not check out our guide on What To Ask When Buying A Used Car? Or When Is The Best Time To Buy A Used Car?

These guides can help you to feel more confident and assured when buying a used car.

Whatever you decide, we wish you luck with your used car lease or purchase!

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Legal disclaimer: FairSquare Europe Limited is a company incorporated in England & Wales (Reg No: 08023305). and having its Registered office address at 3 Brindley Place, Birmingham, B1 2JB. FairSquare Europe Limited is authorised and regulated by the Financial Conduct Authority for credit-related regulated activities, Firm Reference Number 715086

We act as a credit broker not a lender. Fairsquare shall act independently in sourcing credit from our panel of funders.

As a credit intermediary, we maintain a panel of Lenders who are reputable and experienced in the motor finance industry and consumer credit sector and offer products and services to suit a variety of credit strengths.

FairSquare is committed to ensuring that applications for credit to finance your car are placed with the most appropriate funder for a transaction. As we act as a credit broker, we will receive a fixed commission for introducing you to a finance provider, any such amount a lender pays us will not affect the interest rate you pay under your finance agreement, all of which are set by the lender concerned.

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