Why do you think we don’t see more leasing of 2-3 year old vehicles? It seems that those vehicles have already depreciated a decent amount and leasing on the next 2-3 of depreciation should be quantifiable creating lease opportunities. I see BMW does it but the deals are not that great. I don’t really see any other brands doing this. Thoughts?
MFs are not subsidized enough because the manufacturers are mainly measured on new car deliveries. Second, most 2-3 year old cars will be out of warranty during the lease period so it presents even more risk for the lender.
That’s why it’s best to lease new and buy used, in my opinion.
That all makes sense but money factor is really just an interest rate. Interest rate for used car loans are slightly more than new and I often see CPO interest rate specials advertised. It seems that the lease may have more interest baked into it, but wouldn’t the residual value be much less.
For example 40k msrp vehicle with a RV of 52 in 36 months 12k miles give you a 3 year old vehicle at 20,800. What is the value at month 60 or 72?
It would seem there should be a lot of affordable leases for that brand and way less than financing a purchase.
Sorry not “for that brand” meant to write for that type of vehicle
Unnecessary and redundant concept:
Leasing a used car is the same as buying a used car. Trade it in after 36 months
Except monthly payments would be much higher no?
Couldn’t you say the same thing about new cars? Buy it and trade it in 36 month?
It’d be difficult to set RVs as every used car would be different, in terms of miles and condition. Plus, what would the RV be based on?
honda fit
https://automobiles.honda.com/fit-ev/
Pre-Owned Lease Offer
$199 Per Month for 24 months
Available at EV Certified Honda dealers in CA, OR, MA, NY, NJ and MD
$199 due at signing (first month’s payment), plus tax, title and license fees, no security deposit required. For well-qualified lessees. See full lease terms.
Unlimited mileage, collision coverage, roadside assistance, scheduled maintenance and annual navigation updates
Includes Leviton® 240-volt home charging unit (lessee responsible for installation)
Limited availability starting July 2015, based on returned leases
Monthly payments might be lower financing used vs leasing used… 72 mo term and trade it in halfway.
It’s a a jelly and peanut butter sandwich.
@Heyericb With a 72month term for a used vehicle, you’d most likely have negative equity if you trade it in, unless you are near the end of the term.
This thread is making everybody stupid.
Leasing a used car is a stupid idea for the consumer.
I think your statement would be useful if you could explain why it is stupid for the consumer. I think a lease would offer lower payments for the consumer than buying the car similar to a new car lease situation.
Regarding RV. I don’t think it’s that difficult. It just figuring out how much a 5-6 year old car with so many miles is worth.
Thinking about the issue more, I think the biggest problem is thar manufactures would not have any incentives and there would be no bonus/rebates etc that often make leasing new so attractive?
Awhile back I inquired with Cadillac dealer about leasing a preowned ATS. Dealer was really cool and basically said, “mf and rv are horrible”, its not worth it" Lease payments were higher than buying it…
Most or all people who lease want new cars not used cars.
There’s app called “Fair” lease used car in SoCal.
Company founder is formal TrueCar founder.
It’s interesting terms and basic maintenance, warranty included.
But price little high.
Anyone should check.
Toyota had (maybe still has I haven’t checked in a while) leases on used vehicles.
GM leases used vehicles, although I have no clue how they determine the leasing structure, and it’s not widely publicized. I’m not sure why you’d want to lease a used vehicle though, as one of the advantages of leasing is you’re covered under the bumper to bumper warranty for the duration of the lease, which you would not be in a used car.
GM’s vehicles are certified factory pre-owned so they’re covered under a warranty. Warranty isn’t an issue, RV and MF is. As I previously mentioned the monthly payment on them is exceedingly high.
Here’s a quote from a thread I started in February:
Due to insanely low residuals and a very high MF the lease payment on a $29,500 2015 ATS coupe Performance for 36months with 12k miles per year would be $690!!! Insane!!
I can see a scenario where leasing used would actually be a pretty good deal. A 2 year lease on a 2 year old car, that has a 4 year manufacturer warranty. The depreciation in years 3 and 4 is much less than in years 1 and 2. So you’d be driving a relatively new car, under warranty pretty cheap.