Many people often wonder whether or not they can lease a used car. Used car leasing was never as common as leasing new cars. There was a time when you could find used car lease deals at various dealerships. However, since October of 2008, businesses, dealerships, or finance companies that used to offer used car leasing have pretty much stopped offering them.
If you fundamentally understand how to calculate a car lease payment, you would most likely come to the conclusion that leasing a used car from a dealership wouldn’t be economically advantageous anyway. You see, to determine your exact monthly car lease payment on a specific car you are interested in leasing, dealers use a formula which takes into account the residual value of the vehicle. The residual value of the vehicle is the value of the vehicle at the end of the lease. A higher residual value means your car is worth more at the end of the lease, which also means that your monthly lease payments will be lower. Now, if you were to lease a used car that is 5 years old for a period of 3 years, you may end up paying more than if you were to lease that car brand new for a 3 year lease. This has to do with the fact that a car that is eight-years-old will be worth significantly less than a car that is only three-years-old.
Just because it is nearly impossible to find a used car lease deal from a dealership and it isn’t economically wise either, doesn’t mean you can’t find a “used” car lease deal at a great monthly payment. There are certain websites, such as swapalease.com, that allow you to “take over” the lease contracts of lesses who originally leased a new car. Most leasing companies allow lease transfers from one person to another, making this a simple and efficient process. The reason why it could be a smart decision to take over someone else’s lease contract is because a fantastic lease deal that was available months ago may not necessarily be available now.