I’m thinking about leasing a small / midsize sedan soon. 24 mos. / 12k. Would I able to lease a CPO Malibu, Mazda3 etc. under a year old that has already depreciated for under 160 per month?
Stay safe everybody! Thanks!
Lol no. You can’t lease most used cars, and the ones you can aren’t a good deal.
Why don’t you just buy a 2-3 year old used car???
Edit something that holds its value, ie NOT a Malibu. Unless you get one that’s already fully depreciated.
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If there was something leasing for $160 a month you’d see a lot of posts about it. The closest you’ll get right now is a Tacoma. CPO leases are awful. There’s a reason why you don’t see them here
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I might be making myself look dumber 
, but what makes CPO leases so bad?
Usually it’s a combination of no incentives, very low residual values, and higher money factors.
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Try the broker autopia, they have some Kia Forte and hyuandai Elantra deals that might work.
Average money factor, terrible residual and you run out of warranty … you really want to fix a transmission for 4K on a car you don’t own?
I spoke with someone at FiWize a couple months back and they claimed at the time to offer lease financing for used vehicles. The appealing thing about FiWize was that you could purchase a vehicle from a private seller or from a dealer, whatever you prefer. So your monthly payment will be highly dependent on your ability to find a vehicle and to negotiate a good price. My understanding is that companies like Ally, who also offer lease financing on used vehicles, only offer this product through approved dealers. The representative at FiWize told me that late model used 4Runners were leasing for less than $300 per month. I don’t work for them, and there’s still some mystery around their offering. Would love for someone to check them out on an actual deal and to report back.
Hmmm, FiWize is an interesting proposition. It’s not a lease but a loan with a walkaway option. Curious to hear if anyone has actually used this service…
This seems interesting, but looks like a loan with a said option to walk away rather than an actual lease like @vachier said. IE no incentive cash, rebates (outside of buying a used vehicle rebates), etc. That means a really good discount and good RV on an already used car needs to happen to get a good deal.
I contacted FiWize to see what they could work up on a RAV4 Hybrid, MSRP $33K. Here’s what they came back with. Opinions?
Monthly Payment: $469.00
Loan Term: 48 months
Loan Amount: $33,000.00
Down Payment: $0.00
Annual Percentage Rate (APR)*: 5.14%
Final Payment Amount (Guaranteed Future Value): $16,050.00
note: you can turn the car in to the lender at the end instead of paying the final amount
So you would pay $22,512 (75%) over 4 years to rent this RAV4 and THEN either give it back or pay ANOTHER 49% to own it?
It’s a killer deal for FiWize. 
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Yeah it is a good deal for them, but you do get significantly lower monthly payments in exchange (kind of like a lease). This might work for some people to whom monthly cash flow is more important than how much you actually pay in the long term.
How is $469/mo for 48 months significantly lower than a traditional TFS lease?
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I meant significantly lower than FINANCING, not leasing. The leases I’ve looked into for the same car work out to be about the same amount for 36mo lease. Not that I’m saying FiWize is necessarily a good option, but some of the pluses of financing are that you own the car, can sell at any time and also have no mileage limits.
I’ll agree a CPO lease isn’t attractive. That said, transmissions don’t just die when the warranty expires. I’ve had many high mile GMs over the years and the transmission wasn’t a concern at all. Now, nobody knows how many neutral drops the previous guy did, so I’ll give you that.
A risk…yes. A guarantee…hardly.
How is paying 125% of the cost of the car (assuming the ballon payment at the end) cheaper than paying 100-105% of the cost of the car? Because the payment is slightly more affordable?
You can also get your furniture from rent a center but it’s an abysmal value.
You are either trying to build equity in a depreciating asset (financing) or you aren’t. Remember negative amortization loans? FiWize presents NegAms for Cars 
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How’s is getting a 30 year mortgage on your house and paying 50% extra for it in interest over 30 years cheaper than paying cash for it? Answer: It’s NOT cheaper in the long run, but on a MONTHLY basis it is cheaper and makes it possible for those without the capital to buy in the first place. Why do so many people finance things when it’s so much cheaper in the long run to pay cash??? It’s all about monthly cash flow and how much you can afford to pay by the month. That’s why people lease and finance in the first place. If it wasn’t then nobody would finance and people would only pay cash rather than paying so much extra in interest over many years… $200 a month difference on a car payment for someone with a low income can be a make it break it or break it deal for them. I’m not saying FiWize is a good option for most, but for some people this may make sense.
FiWize is just a couple guys in AZ who plug in to the CUs that are signed up with AFG’s balloon loan program. The RVs are garbage and they have very little analytics beyond using a straight ALG RVs. AFG takes the CU’s retail rates and bumps them 1% and adds a fee (like an acq fee) so the rates are awful
You’ll also need to live in a specific area to qualify nor membership at one of the credit unions that FiWize has signed up with.
There is only one used lease program with potential attractive payments but it’s restricted to only certain parts of the country because it is also based on credit union membership requirements. If you live in CO, northwest OH or San Diego county, Pm me for details. The used leases that work best are on several non-luxury models that don’t lease well as new. Mostly trucks and SUVs that are 1-2yo work best.
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Because they lack impulse control and can’t be bothered with math.
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