Used Car Leasing

If you’re in the market for a used car, it makes sense to consider all of your financing options. Car leasing is one of the most cost effective ways of securing a new vehicle, but does it offer the same advantages when you’re leasing a used car? This guide will explain exactly how used car leasing works and who it is right for.

Used car leasing: How does used car leasing work?

Generally speaking, leasing a used car means undertaking the same process as leasing a new car. You contact the dealer, or broker and negotiate a price. The used car leasing company then has the car inspected and checks your credit before leasing it back to you. You then sign a contract to make regular payments over a set term. Once the term expires and all payments are made, you return the used car to the leasing company.

What makes used car leasing different, is the vehicle itself. In theory it should be less expensive to lease a used car, because car leasing is based on the depreciation of a vehicle's value. This is because a used car has already undergone its most rapid depreciation in its first year.

Hyundai i30

1.6 CRDi SE 5dr

  • Profile:
  • 9+17 8k Miles p/a
  • Mileage:
  • 8k


Per Month, INC VAT

£1,069.20 Initial Payment

Personal Leasing Deal by: Holdcroft Hyundai Hanley

Used car leasing: What are the advantages of leasing a used car instead of a new car?

The main advantage of leasing a used car instead of a new car is the same as the reason to buy a used car instead of a new car – affordability.

As you will generally lease a car over a shorter period, you will not be paying as much as you would for a longer term lease on a new vehicle. Payments will generally be lower too as the car’s value will have depreciated more in the first year(s).

However, does this make used car leasing a good deal? Certainly used car leasing can offer lower payments than financing a used car with a loan or leasing a new car.

Despite this, leasing a new car often works out as a more cost effective proposition. This is because leasing companies negotiate the price of new vehicles and can generally secure much more cost effective terms. Promotional incentives, discounts and rebates can make a new car lease a better deal and cheaper than leasing a used car.

Our suggestion is that you visit the car leasing section at to discover the leasing options available on the new vehicle of your choice. Compare quotes on both used and new cars to find the right deal for you.

Used car leasing: What factors should I consider before I choose a used car to lease?

It is more difficult to evaluate a used car lease than a new car lease, because there are many additional factors to consider. These include:

  • True market value – Do your homework before negotiating a fair price. This is the key to securing a good deal.
  • Mileage – Remember to check the number of miles on the clock. A high mileage car is unlikely to be offered a good leasing contract. Generally a car’s maximum mileage to be deemed ‘good value’ should be 15,000 miles/year. So a car less than a year old should have no more than 15,000 miles on the clock, a car two years old 30,000 miles, etc.
  • Repair costs – Most used cars will not come with a warranty, unless there is time remaining on the manufacturer’s warranty. Any existing problems will be your responsibility as soon as you sign the agreement.
  • Read the contract thoroughly – With any used or new car leasing agreement you should read the contract thoroughly to avoid being hit with add-on fees or unexpected charges.

Also, a lot of deals may be advertised as used car leases, but they are actually a Personal Contract Purchase (PCP). If there is an optional final payment at the end of the monthly payments, then it is a PCP deal, not a lease.

Used car leasing: What used cars are available to lease?

The range of vehicles available is almost as wide as the options available with new car leasing. However, as they are existing cars, you obviously don’t have any opportunity to add options, choose the colour and so forth.

Used car leasing: Could I save on my monthly payments?

There are many new vehicles that are available to lease for under £150 a month (plus initial payment), which is comparable to the sort of monthly payment you would have to make on a used family hatchback. So it’s always sensible to dismiss the notion that new cars are expensive and shop around to see what you can get for your monthly budget, you may be surprised.

Cheap New Car Deals

SEAT Leon Hatchback

1.2 TSI SE Dynamic Technology 5dr


Per Month, INC VAT

9+23 8k Miles p/a

£1,608.91 Initial Payment

image: Leasehub
Fuel Type: Petrol
Transmission: Manual
Road Tax: Fully Included
In Stock
Personal Contract Hire
Car Leasing Deal by: 

Vauxhall Corsa Hatchback

1.4 ecoFLEX SRi 5dr


Per Month, INC VAT

9+59 8k Miles p/a

£1,301.68 Initial Payment

image: Alpha Lease
Fuel Type: Petrol
Transmission: Manual
Road Tax: Fully Included
In Stock
Personal Contract Hire
Car Leasing Deal by: 
Alpha Lease

Peugeot 208 Hatchback

1.2 PureTech 82 Allure 5dr


Per Month, INC VAT

9+35 8k Miles p/a

£1,601.64 Initial Payment

image: Blue Chilli Car Contracts Ltd
Fuel Type: Petrol
Transmission: Manual
Road Tax: Fully Included
Personal Contract Hire
Car Leasing Deal by: 
Blue Chilli Car Contracts Ltd

Used car leasing: Where do I go to lease a used car?

As with buying a new or used car, the most sensible advice is to shop around for the best deal online.

At we advertise more than three million new car leasing options. Use our search tools to ensure you’re getting the cheapest offer on the vehicle of your choice and remember to compare the rates available on both used and new cars models to ensure you’re getting the most cost-effective deal. You might just find that leasing a new car is actually the most cost-effective option.