Leasing a used vehicle?

"Turbineguy: Nom de Zoom" (will-alib)
03/16/2019 at 19:03 • Filed to: None

Yay or nay? I just heard a radio commercial for a local dealer advertising used vehicle leases. On one hand it kinda makes sense as the car has already taken it s big hit in depreciation, which theoretically should make it cheaper to lease based on residual. What are the pros & cons here?

DISCUSSION (9)

bshappy > Turbineguy: Nom de Zoom
03/16/2019 at 19:13

If the price is right, why not?

Napoli > Turbineguy: Nom de Zoom
03/16/2019 at 19:14

My friend has leased two used lexuses. I think it makes sense.

Klaus Schmoll > Turbineguy: Nom de Zoom
03/16/2019 at 19:23

My stepdad used to lease 3 y/o 5 series BMWs (so former lease cars) as company cars. Years 3-6 are usually trouble free, they turn into money pits later on in life. As they are company cars, they are expenses which can be paid with p re-tax money, but he still has to earn that money hence the pre-used route.

They have treated him well, except the E61 with which he left the sunroof open over night and it started to rain. He didn’t bother to dry it out immediately and just threw a towel on the driver’s seat and went to work. The car survived surprisingly well, but those weird electrical gremlins that started to appear from time to time after a couple weeks can surely be att ributed to that incident.

He now leases an ex-rental. A one year old car with 15k miles for half the MSRP can be tempting if you’re not planning on keeping it around long term.

BrianGriffin thinks “reliable” is just a state of mind > Turbineguy: Nom de Zoom
03/16/2019 at 19:25

I think it depends how “used” and what the fee is. If it’s like a 2015 luxury car (say a 335i, which retails for about $25k) , three year lease, total cost like $6-7 k or less (so $~200ish a month); not bad. On the other hand, I’ve seen places leasing a ten year old Dodge Charger for $450 down, $250 a month for two years...that’s nuts.

Same issues with leases pertain (no ownership, having to pay out the lease if totaled, etc).

FTTOHG Has Moved to https://opposite-lock.com > Turbineguy: Nom de Zoom
03/16/2019 at 19:38

I would do this under 2 conditions. First and most importantly that the vehicle is still under warranty - say a 3 year lease on a car that just came off a 2 year lease and has 3 years left on a 5 year warranty. And second only if it was something likelt to have expensive problems after the lease but I couldn’t afford new - maybe an M4 or RS5 or something like that.

KingT- 60% of the time, it works every time > Turbineguy: Nom de Zoom
03/16/2019 at 19:39

I’d lease a used car if

1. Is a lease return at the bottom of the 3 year depreciation hit.

2. It’s got less than 30K miles so I can drive it for another 30K+ miles without any major maintenence coming up

3. It’s from a brand that has high reliability AND resale so the residual value will still be high even if used driving down lease payments . So, Toyota/Honda/Subaru/Lexus.

I assume inte rest rates and fees would be higher on a used vs new car, plus no manufacturer discounts/rebates anything.

BrianGriffin thinks “reliable” is just a state of mind > Klaus Schmoll
03/16/2019 at 20:25

Are there brand dealers that do this, or third party companies? I’ve never seen a preowned lease really aimed at financially sound people.

itranthelasttimeiparkedit > Klaus Schmoll
03/16/2019 at 22:05

as an e61 owner (and previously e60 owner), I can confirm the gremlins always exist in an e61, rain or shine

Klaus Schmoll > BrianGriffin thinks “reliable” is just a state of mind
03/17/2019 at 07:34

In Germany you get them from the brand dealer, or anywhere else.