Anyone Here Ever Leased A Used Car?

[Singuy]

I am curious if anyone have done this and what the interest rate was compared to a new car lease.

If one wants to swap out cars every three or so years, leasing used might be the best possible way to do it but I have no idea if anyone you know have ever done it.

[james.hendrickson]

Buy used, no need to throw money away on a lease.

[Singuy]

Buy used, no need to throw money away on a lease.

Yes, but we are talking about car swapping every 3-4 years for the enjoyment of it. Not everyone want to drive a car until the wheels fall off..but paying the depreciation for a brand new car to play this game is also not very financially sound.

[TexasHusker]

We are leasing a 2016 Range Rover Sport. It was technically used because it had 1800 miles on it. But it was basically like new and we cut $100 a month so it was perfect for us.

I highly recommend D&M Leasing - they specialize in used car leasing and can beat most dealer deals. Example : their MINIMUM mileage allowance is 15,000 miles a year, and even if you exceed that, it's just $.15 a mile.

So if we got crazy and drove it 20,000 miles, it would only be $750 more dollars.

[TexasHusker]

As for throwing money away, I was eating lunch with a friend yesterday who bought a small jet for his business and for family trips, etc. He said it costs about $1300 an hour to operate. But he told me "you can't cost-justify it in any way. You buy a plane because you have the money and you want the convenience."

Not unlike eating out, cable TV, Starbucks, spa treatments, country club memberships, and new cars.

[bigdaddybus]

The car I drive now, I bought off lease 3yr/30,000 miles on it for 52% of new msrp. I wish I would have leased it, as now at 6 yrs/61,000 miles I am bored with it.

Just joining in to read any responses as the older and higher my income gets the more leasing appeals to me.

[Singuy]

Well I had a pretty extensive conversation with the people Texushuskar recommended. They specialize in leasing used cars but unfortunately they don't serve people outside of Texus(and I'm from FL).

I think leasing a used LUXURY car is a pretty financially sound idea.

You can lease a CPO 3 yo car at about 60% of its MSRP(since luxury cars are notorious for having massive depreciation) and still have the benefit of all the bumper to bumper extended warranty from the car being a CPO.

So I did some math and it looks something like this.

New BMW X5 cost 55k
Used 3yo with 30k miles is around 25k
Depreciation at 6 yo and 60k miles is around 19k

So it costs 6000+fees/3years to drive a car that was once worth 55k.
So the lease probably cost around 185/month after interest.


I believe 30k-60k miles is the sweet spot for luxury cars.

1. They depreciated 40-55% already at 30k miles
2. You can have a cpo or extended warranty that covers up to 3 more years and 100k miles
3. Even without CPO, your luxury car will most likely survive between 30k-60k miles.
4. The luxury car is still worth 40% of MSRP at 60k/6 year old
5. If you buy a 3 year old car 3 years after the new model..and it usually takes the manufacture to refresh their models every 5-6 years..you may end up with the newest model car every 3 year swap if you play your cards right.

This might be cheaper than buying a new Toyota and driving it until the wheels fall off.

If a Toyota cost 30k with leather and upgrades, it will take 13 years of 185/month payments to reach that number.

To me the math works...but I just need someone in FL to do it.

[TexasHusker]

Singuy I contacted D&M out of curiosity, and they apparently have programs in 13 states, but supposedly they are going to announce a national program in Jan or Feb.

[disneysteve]

the older and higher my income gets the more leasing appeals to me.

Interesting. I would think just the opposite would be true. The more you earn, the easier it is to buy your cars outright for cash.

I would never lease because it will virtually never be cheaper than buying. I bought my last car 1-year-old and kept it for 14 years. I bought my current car 6 years old and have had it for just over 4 years so far. I have no intention of replacing it anytime soon.

I don't get the appeal of changing cars every 3 years. I would hate that. I want to keep my cars as long as possible.

[Singuy]

Interesting. I would think just the opposite would be true. The more you earn, the easier it is to buy your cars outright for cash.

I would never lease because it will virtually never be cheaper than buying. I bought my last car 1-year-old and kept it for 14 years. I bought my current car 6 years old and have had it for just over 4 years so far. I have no intention of replacing it anytime soon.

I don't get the appeal of changing cars every 3 years. I would hate that. I want to keep my cars as long as possible.

If you treat cars just as a tool for transportation then yes..get a boring Lexus or Toyota and put it in your will since you may not outlast the car. Also if we are just treating cars as an appliance..then get the ones that last the longest with the cheapest oil changes/maintenance/repair cost...like a used Toyota.


To others it's a hobby. Some people like to feel accomplished while driving their cars...others like the sound of the engine, or the interesting new tech(self driving, apple car play, etc). Not everyone want to sit on a ripped cloth/leather seats for 10 years listening music off a burnt CD from 2004. None of us are thinking about doing it because we couldn't afford the monthly payment of a regular finance. If that's your reason to lease then you might want to reevaluate your choices.

[disneysteve]

To others it's a hobby.

Definitely. If you are a car enthusiast, that's an entirely different conversation.

Not everyone want to sit on a ripped cloth/leather seats for 10 years listening music off a burnt CD from 2004.

My car is now 11 years old. The leather seats are in perfect condition. And when I want music, I plug my iPhone in through the cassette player and stream whatever I want to hear from Spotify .

[TexasHusker]

Definitely. If you are a car enthusiast, that's an entirely different conversation.


My car is now 11 years old. The leather seats are in perfect condition. And when I want music, I plug my iPhone in through the cassette player and stream whatever I want to hear from Spotify .

I've had about 45 cars since I was 18 years old (I'm 50 now). I have owned everything from Ferrari to Range Rover to Chevy and everything in between.

Some people like cars. Others like model trains, fly fishing, stamp collecting, mountain climbing, jello wrestling, and surfing the internet.

To each his own.

I could buy just about any car I wanted and pay cash, but that would mean that said cash isn't working for me any more. I'm not about to pull out $90K from a very productive investment to buy a Range Rover. That's stupid.

A monthly lease payment is much more palatable.

[rennigade]

II'm not about to pull out $90K from a very productive investment to buy a Range Rover.

Thats a relief considering range rovers are notorious hunks of trash. I know 3 people that have range rovers and they spend more time in the shop than on the road. But they're cool I guess.

[disneysteve]

I've had about 45 cars since I was 18 years old (I'm 50 now).

I'm 52 and my current car is the 5th I've driven. The 1st was a family car when I got my license. The other 4 have been mine. I had them for 9 years, 7 years, 14 years, and now 4 years so far.

[james.hendrickson]

My brother had a range rover - it turned out to need a lot of maintenance costs, so he sold it and bought a Toyota 4 runner.