Is it a smart idea to buy a 3yo car after someone else leased it for 3 years?

What’s the best bang for the buck on driving a car and paying the least?

Like if instead of financing a new car, you decide you will instead make payments to yourself of $250 a month each month for 3 years BEFORE you buy that car, with some money market fund so you’ll wind up with $10,000 saved. 

Say that car is $18,000 and 3 years later it be worth about $10,000 , you put the  $10,000 down you paid to your yourself waiting the 3 years not using the car 

Then literally it’s your title you own it ... 

Update:

A nice durable car with only 36,000 miles on it and no payment it’s yours 

8 Answers

Relevance
  • Jay P
    Lv 7
    4 weeks ago

    Whether the former owner was a leasing company or it was an individual that just decided to trade it in after 3 years isn't a concern for the next owner.

    What is a concern is that the vehicle is in good shape, was maintained properly, and wasn't abused.  This can be an issue, regardless of whether it was, or wasn't, a lease return

  • Anonymous
    4 weeks ago

    The value of the car is 1/2 that of when it was first leased. The leaser paid 1/2. You should find out first what the original amount was. The seller has to make some money. After finding the original amount divide by half & add 10% of the original price. That's all the seller should profit.

  • 4 weeks ago

    Good idea.   Most of the depreciation on the car has already taken place.   The car was well maintained under the lease and you often can buy one that is certified and has an extended warranty.  

  • 4 weeks ago

    Many people buy their cars this way. But it requires self-discipline that many other people don't have. Buying a previously leased car is a way to get a good used car, almost new, often with low mileage, for about half the price of the brand new model. These are often sold by dealers as Certified Pre-Owned (CPO) vehicles and may cost a little more because they've been inspected, repaired (if necessary), and come with a short warranty. 

  • How do you think about the answers? You can sign in to vote the answer.
  • Anonymous
    4 weeks ago

    Has worked for me . . . of course, the usual precautions in selecting the car.  Was easier in past years when many people had 12 month leases *  - now you must make sure a `1 or 2 year off-lease car hasn't been in a wreck.  Most depreciation occurs the first time a car leaves the lot - eliminate that!

    (*  we have kept an off-lease creampuff that's the best of all - it's now 12 years old!  We hooked-up with a new car dealership with a big leasing department - they had a customer who leases a new car every year - this one was 11 months old with 8000 miles on it - sticker price 12 years ago was $35,000 - we got it for $16,000! - absolutely like new and still is after 80,000 trouble-free miles).

  • Anonymous
    4 weeks ago

    Of course it would be a good idea. IF you could get a 3 year old 36k mile car for $10k.  Unless you can buy from a dealer only auction, I'm not sure you can.

    Head on over to carvana and find this mythical 3 year old 36k mile car that cost $18k new for $10k.

    Also if they need a car how, can they wait 3 years to save up?

    As an example of how much your price is off...take a 2018 Hyundai Accent which cost about $18k new.

    The cheapest at carmax nationwide with under 36k miles is $13,600 which is $14,000 with their mandatory fee.

    Now, It would be nice to be able to buy $14,000 cars for $10,000 but you probably can't.

  • 4 weeks ago

    If you do that for your first car, then save for your next car before you need one, you will eventually become a millionaire.

  • 4 weeks ago

    It is a wise plan, IF you can save that $250 /month for 3 years.  Many people can not save money at all.  Many others need a car now, not 3 years from now.  

Still have questions? Get your answers by asking now.