Sometimes your home budget doesn’t leave enough space to buy or lease a new car, but that doesn’t mean you have to give up driving. Leasing a pre-owned car is becoming more popular over the years, which is why many are wondering: Can you lease a used Toyota?
Yes, you can lease a used Toyota. It’s a more affordable alternative to buying or leasing a new model. So you can get the best of it, ensure you find a certified pre-owned, or CPO, Toyota vehicle. CPO can assure you that a car has gone through the necessary professional inspections and met the highest standards.
If you wish to find out more about leasing options with pre-owned Toyota and the many benefits (and few disadvantages) of it, here is what you need to know.
Leasing a car, in general, is a common solution for those who can’t afford hefty down payments, but leasing a pre-owned car is even better for those who want to save up. Toyota, one of the most reliable car brands, offers this possibility.
As with leasing the new car, the price is determined based on the vehicle’s residual value after the lease ends. Have you heard about the fact that a new car loses a significant percentage of its worth from the moment you leave the loft with it? A pre-owned card loses its value a lot slower than a new one, which is why offers can be a lot more affordable.
The process itself is much similar to leasing a new vehicle. There will be a down payment and acquisition fee, monthly financial obligations, and a determined interest rate. If you pass the mileage limits or break the wear-and-tear policy, you must also count on possible additional expenses. However, each dealership service functions differently, so ensure to contact the dealers before making your decision.
After the lease ends, you can opt to buy the current car, lease another, or just return it to the dealer.
Although leasing is one of the options with private dealers, too, the smartest thing to do is choose certified pre-owned (CPO) vehicles with official Toyota dealers. That program was launched back in 1996 and remains very popular.
It’s the best solution if you want to use a quality car in excellent condition, mechanically and esthetically. Authorized dealers will offer you the possibility of a 24-60 months lease period.
Another possibility is buying someone else’s lease. There are websites (Swapalease or, for example, LeaseTrader) where you can find people who wish to sell their leases. However, then you’re bound to accept all the terms of the pre-made deal and will probably have to pay additional fees.
CPO essentially means that the car has passed a thorough inspection and meets Toyota’s high standards. Toyota official dealers also place limitations on pre-owned cars – the model needs to be less than 4-8 years old and shouldn’t have a mileage above 48,000-85,000, depending on a dealer.
If quality and security are what you’re looking for, consider leasing a CPO car despite its higher price – CPO Toyota cars simply offer more security than non-CPO or those you can get from an independent dealer. Here is what you can expect from a Toyota CPO car.
|Comprehensive Warranty||Yes (for 12 months/12,000 miles)|
|Powertrain Warranty||Yes (for 7 years/100,000 miles)|
|Roadside Assistance||Yes (for 7 years/100,000miles)|
|Quality Assurance Inspection||Yes ( minimum 160 points)|
|Vehicle History Report||Free|
|Possibility of transferring a lease||Yes|
|Returning policy||Not allowed|
CPO program guarantees that you’ll get the best from the pre-owned car, with plenty of added benefits, like 24/7 road assistance. However, keep in mind that you would have to pay around $4,500 more for a CPO Toyota car is, on average, than for non-CPO vehicles. Still, remember that initial offers can always be negotiated.
The biggest advantage of using a pre-owned car is its affordability. Not only will you have to pay less on a monthly basis, but you’ll also meet lower insurance costs (insurance costs are directly proportional to the value of the vehicle).
On top of everything, you’ll have the possibility of driving a nicer car model since they are more affordable when pre-owned than brand new. Even if you have a not-so-stellar credit score, leasing shouldn’t be a problem. However, keep in mind that pre-owned cars do have come with higher interest rates.
Of course, there will be a few cons if you choose this option. The mileage limit is one of them – if you love long road trips or have too lengthy commutes, maybe leasing a pre-owned car is not the best move. Also, although costs will be more bearable, keep in mind that older cars often have more maintenance issues than new ones.
However, in most cases, getting a pre-owned Toyota can be an excellent solution – if you get the car from a trusted source. After all, you’ll be able to use a high-quality car without having to break the bank.
Do you need more money for student loans or mortgage payments, but you don’t want to give up comfort and security? Or do you just want to spend money somewhere other than on large down payments and high monthly installments for vehicles? Using a pre-owned car is the right decision when you want or need to direct your income to something else.
Getting a pre-owned car is also much less stressful for those learning to drive. If you (or your kids) are still learning the ropes of driving, a pre-owned but reliable car is the best choice.
This decision will remain only with you, your needs, wishes, and preferences. However, if owning a car (or leasing a new one) is a luxury you can’t afford, don’t fall into despair.
Toyota is an excellent choice, even a pre-owned one, as long as you are familiar with the vehicle’s history, including inspection reports. And the best part? Even if you don’t fall in love with it, there are other options – just lease a different one in a couple of years.