Is leasing a used vehicle a good idea?

Run the numbers to find out if leasing a used vehicle makes sense

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From the April 2015 issue of the magazine.

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Leasing a new vehicle usually makes more sense than leasing a used vehicle (Getty Images)

Leasing a new vehicle usually makes more sense than leasing a used vehicle (Getty Images)

“I’d like to lease a used vehicle for three years. It comes with a two-year or 40,000-km warranty. Is this a good idea?”—B. Young, Toronto

The math is not likely to work out for you: The monthly payment for a used vehicle plus a complete warranty would add up to the same amount it would cost to lease a new vehicle, perhaps one with fewer extras. A new vehicle means simple and predictable maintenance requirements, while a used vehicle is liable to require more maintenance in its 5th to 7th years, plus repairs not covered by the warranty. Leasing a new vehicle usually makes more sense than leasing a used vehicle.

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3 comments on “Is leasing a used vehicle a good idea?

  1. Leasing a vehicle should not be a means to an end. Period.

    Buy a used reliable vehicle cash and you will win every single time. If you can’t buy it cash, it means you can’t afford it right? Take the bus and ride your back.

    2001 toyota Echo w/145k cost 2500$ and I have since put in a whopping 900$ for new tires and a brake job.

    Total cost 3400$. Even if I need to repair it every year for the next 5 years @1k a year which is being unrealistic. This car would cost 7500$. Find me a financing scenario where it would cost you under 10k for 5 years…

    Case closed.

    Reply

    • * “ride your bike”

      Reply

  2. It is good idea. But also depend on leasing if used smart auto leasing really beneficial.

    Reply

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