Quick answer: yes, you can lease a used car, but usually only a certified pre-owned (CPO) car from a franchised dealer of the same brand. Honda, Lexus, BMW, Toyota and several other brands offer CPO leases through their own finance companies. A used lease normally costs less per month than leasing the same model new, but the rate is often higher and the choice of cars is smaller.
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Which Brands Offer Used (CPO) Car Leases?
Most used-car leases come from the carmaker’s own finance company, and only on cars that passed its certification program. Programs change often, so treat this as a starting point and confirm with the dealer:
| Brand | What qualifies (as last published) | Source |
|---|---|---|
| Honda | HondaTrue Certified cars 6 years old or newer with under 80,000 miles. GAP coverage comes standard. Leased through Honda Financial Services | Honda (2026) |
| Lexus | L/Certified vehicles, leased through Lexus Financial Services | Lexus (2026) |
| BMW | Certified cars from the current and prior four model years; up to 100,000 miles by lease end | Cars.com (2024) |
| Toyota | Certified cars up to three model years old | Cars.com (2024) |
| Acura | Certified cars five model years old or newer | Cars.com (2024) |
| Porsche | Up to five model years old and 72,000 miles; 12- to 60-month terms | Cars.com (2024) |
| Buick, Cadillac, Chevrolet, GMC | Recent certified models with mileage limits, through GM Financial | Cars.com (2024) |
Leasing a used car that is not certified is rare. A few independent leasing companies do it, but most banks and carmakers will not.
How a Used Car Lease Works
A used lease works just like a new one. You pay for the value the car loses while you drive it, plus a finance charge:
- Depreciation part = (price − residual value) ÷ number of months
- Finance part = (price + residual value) × money factor
- Money factor = APR ÷ 2,400 (so 0.0025 is about a 6% APR)
The residual value is what the lender expects the car to be worth when the lease ends. Because a 3-year-old car loses value more slowly than a new one, the gap between price and residual is smaller, and that is why the monthly payment can be lower.
Used Lease vs New Lease vs Buying Used: Cost Example
Here is an example for a midsize SUV that costs $38,000 new. The 3-year-old CPO version sells for $27,000. All options are 36 months with no down payment, before taxes and fees:
| Option | Key numbers | Monthly payment | After 3 years |
|---|---|---|---|
| Lease it new | $38,000 price, 58% residual ($22,040), money factor 0.0025 (about 6% APR) | About $593 | Return the car or buy it for $22,040 |
| Lease it used (CPO) | $27,000 price, $19,000 residual, money factor 0.0033 (about 8% APR) | About $374 | Return the car or buy it for $19,000 |
| Buy it used with a loan | $27,000 at 8.81% APR for 60 months (Experian Q2 2026 average for prime used-car loans) | About $558 | You owe about $12,200 on a car worth about $19,000 |
In this example the used lease has the lowest payment by far. Over three years the lease costs about $13,500 in payments. Buying costs about $20,100 in payments but leaves you about $6,800 in equity, so the real three-year cost is very close. The difference: buying keeps the car and the equity, while leasing keeps your monthly budget low and lets you walk away.
These numbers are an example. Real residual values and money factors are set by each lender and change every month. Use our car payment calculator to test a loan, and our car depreciation calculator to see what the car may be worth when the lease ends.
Pros and Cons of Leasing a Used Car
| Pros | Cons |
|---|---|
| Lower monthly payment than leasing the same model new | Usually limited to certified cars at franchised dealers |
| The first owner already took the biggest drop in value | Money factors (rates) are often higher than on new leases |
| CPO warranty often covers much of the lease | Fewer choices and fewer special deals |
| A cheaper buyout price if you want to keep the car | Mileage limits and wear-and-tear charges still apply |
| GAP coverage is included in some programs (for example Honda) | Older tech and features than the new model |
Can You Lease a Used Car With Bad Credit?
It is harder. Leases are approved by the brand’s finance company, and most want good to excellent credit. With lower scores you may be asked for a larger payment at signing, a co-signer, or be declined. If leasing does not work, a used-car loan from a credit union is often easier to get. Our car payment calculator shows what that loan would cost at different rates.
Is a Used Car Lease Right for You?
- Good fit: you want a nicer car for a lower payment, drive a predictable number of miles and like switching cars every few years.
- Poor fit: you drive a lot, want to keep a car for many years, or can get a low-rate loan and would rather build equity.
- Before you sign: ask for the price, residual value, money factor, mileage limit and all fees in writing, and check how much of the CPO warranty is left.
Frequently Asked Questions
Is it cheaper to lease a used car?
Usually the monthly payment is lower than leasing the same model new, because a used car loses value more slowly. The rate (money factor) can be higher, though, so compare the full cost, not just the payment.
Can you lease a car that is not certified pre-owned?
Rarely. Carmaker finance companies lease only their certified cars. A few independent leasing companies lease other used cars, but terms are usually less attractive.
How old can a car be to lease?
It depends on the brand. Honda allows HondaTrue Certified cars up to 6 years old with under 80,000 miles. Other programs have been limited to cars about 3 to 5 model years old.
Does a used car lease include a warranty?
CPO cars come with the brand’s certified warranty, which often covers much of a 2- or 3-year lease. Check the end date of the warranty before you sign.
Can I buy the car at the end of a used lease?
Yes. Most CPO leases let you buy the car for the residual value (plus any purchase fee) when the lease ends, return it, or lease another car.
Is there a mileage limit on a used car lease?
Yes. Most leases allow about 10,000 to 15,000 miles a year, and you pay a per-mile charge for anything over the limit.
Weighing your options? See how fast a car loses value with our car depreciation calculator, and estimate a loan payment with the car payment calculator.
This article is for general information only and isn’t financial advice. Lease programs, eligibility rules, rates and fees change often and vary by dealer and state. Confirm current terms with the brand’s finance company or dealer before you sign.
Last updated: September 2026
Sources and further reading
- Honda — Certified pre-owned leasing
- Lexus — L/Certified financing and leasing
- Cars.com — Which companies offer leasing for certified pre-owned cars
- Edmunds — The residual value of leasing
- Experian — Average car loan interest rates by credit score (Q2 2026)
This article was researched and fact-checked by the AutoExpertsHub editorial team against the sources above. Learn how we work in our Editorial Policy. Spotted an error? Let us know.
