Have been reading up on how leasing used cars is a thing now and that it is worth it. I’ve reached out to a bunch of Toyota and Honda dealerships in the Los Angeles (SoCal) area, and everyone is saying no. Just spoke with Audi Financial services and they said that this is a dealership decision. Any one with experience that can help me decide whether this is worth the trouble? I was originally looking to lease a new car, but wanted to wait for the 2019 Hybrids to roll out, but need something in the meantime (and willing to lease for a few years)
Used cars don’t have any manufacturer supported rebates or incentives, and coupled with very high MFs, I’ve never seen an instance where it was worth leasing used. Warranty will also be an issue. At that point, I don’t know why you wouldn’t just buy it if you’re eating the vehicle’s remaining depreciation.
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There are several threads already about this. If it worked out, it was very rare.
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I can only speak to GM but their CPO lease program is very bad. Tier 1 MF is .00273 6.55% for 36 months and .00292 7% for 48. That alone would make me say no!
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They’re saying “now” or “no”?
Leasing used cars isn’t attractive. Search the forum for other threads. Don’t waste your time looking into it further
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no, haha thanks for catching that! I edited
I was just reading up on how the biggest depreciation is in the first few years, so after that the depreciation isn’t as steep, and therefore monthly’s are lower. But thanks for the input, all of the responses are steering me away
You’re correct, but that depreciation is offset by manufacturer supported rebates and dealership discounts, so you’re sharing the burden of that depreciation (to put it simply: if you get a 20% discount and the residual is 60%, you’re only eating 20% depreciation). Combined with a low MF, you’re driving a new car with the latest tech under full warranty with a low money factor.
Compare that to a used car, where you’re paying the full spread of depreciation (there are no incentives), a hefty amount of interest, and are responsible for repairs since you’re driving outside of warranty, on an old car.
Hopefully this helps paint the picture a little clearer!
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most definitely, thanks for the heads up!