Used Car lease?

Ask the Hackrs Used Cars
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1

Does anyone know of any manufacturers or dealers who do leases on used cars ?
I called a few I was interested, but they said their financial companies didn’t allow leases on used cars (just new or loaners).

Location - Tristate - NY, NJ, CT.

Rationale - lower depreciation and so higher % residuals and so lower payments. Don’t mind driving a 2-3 year old car.
Also thinking they may be willing to do a 24 month lease instead of 36.

One may get a similar deal on a transfer but that seems to come with its own challenges.

2

Was interested in similar - BMW dealership said BMW doesn’t do CPO leases anymore but not sure if accurate or just don’t want to bother

3

It’s been discussed before, usually not worth it, especially on mystery cars

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You’ll be driving a 2-3 year old car that has been used/abused, for which you will be responsible for wear/tear and maintenance. Warranty also expired or almost expired. Not worth the headache for manufacturers/lessors.

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5

I did a CPO lease on a BMW one time. IT wasn’t bad but also nothing too worthy of LH status. It doesn’t make as much financial sense as you’d optimistically think.

6

Usually used car leases have incredibly low residual values, so they end up costing more to lease than a new one.

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Used leasing is about to grow significantly in the coming 18 months. But currently ther is nothing in your area yet. Here is one of our dealers that does a lot of used leases:

https://www.clearshiftcars.com/clearpay-specials-299-mo

Everything is advertised at 299/mo with cap reductions at anywhere from 1k-2.5k. Some are at 36 and others are at 48mo. So nothing worthy of LH but the current loan payments on these are much higher so there is strong demand among the general public at these price point/deal structures.

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What is your budget?

9

Interesting… good to know :+1:

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It makes sense that somebody could make a business out of it. Most 2-3yo cars are low risk so you could even bundle in an extended warranty for the out of warranty period. Bought off auction, depreciation should be much less than a new car for an additional 36 months.

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Thanks for all the notes !

Budget 300$/mo Or less all in.
Will reach out to the link provided.

I had reached out to a few BMW , Mini and Infinity dealers and they said their financial companies (ie. BMW Financial, Mini financial, etc.) did not support used car leases.

Perhaps the financial companies dont want to deal with the uncertainty around 5-6 year old car post the CPO lease. Perhaps this might be easier for companies like Carvana & Vroom to get into?

Would be interesting to see how this landscape changes in 18 mo.

Thx!

12

Why not just lease a new car within your budget? Have you searched the Marketplace for past deals in that price range?

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Budget $300/mo and want a BMW. Outside of trying to hack a unicorn, I just don’t get it :man_facepalming: FYI it usually costs more to own a used BMW than it does a new BMW…

How about a 7 series??

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And there won’t be any used BMW leases for $300/mo all in. The only thing at those levels are low depreciation vehicles at lower price points.

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I have got a new BMW below $300/mo effective, but it’s an X2 and my :unicorn:

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Yes I also like 2019 much better than 2020.