• Tue. Nov 29th, 2022

Can you rent a used car?

ByElla E. Kidwell

Oct 9, 2022

(iSeeCars) – When it comes to buying a car, you can be torn between buying and leasing. While leasing a car can be a great option if you want a different car every few years, you might be put off by the high monthly payments for the cars you’re interested in. What you might not realize is that you can also rent a car. used car. Although used cars only represent a small percentage of the rental car market, it is still possible to rent a used car. And with used car prices at record highs, leasing a used car could be a smart financial decision.

So how can you rent a used car, and is it a good idea? We have the answers.

What used cars can be rented?

Used cars available for lease are usually Certified Pre-Owned (also known as CPO) cars from car dealerships. A Certified Pre-Owned vehicle is a late-model used car that is sold by a franchised dealership after it has been thoroughly inspected. Each manufacturer has different criteria for their CPO vehicles, but they will generally be less than 6 years old and have no more than 48,000 miles on the odometer.

You can also take over a lease from someone who wants to get out of their lease. It may be because they are in difficulty or because they no longer need a vehicle. Whatever the reason, they will list their car on a leasing company website like SwapALease.com or LeaseTrader in hopes that someone can take over their lease so they don’t have to incur the penalties associated with termination of their rental agreement. In this case, you won’t be required to pay a deposit and you can probably negotiate with the seller to pay the transfer fee. However, when taking over someone’s lease, you should estimate how much you plan to drive the vehicle to make sure you don’t go over the mileage limit. If you exceed the mileage limit, you will have to pay a penalty when you return the car.

How to find a used car to rent

Used car rentals from dealerships are rare and not widely advertised. The best way to find a used car lease is to do the legwork yourself. All major manufacturers, both mainstream and luxury, offer CPO vehicle leases. However, some automakers, including Stellantis, Ford and Nissan, require outside financing, while Toyota’s finance department provides financing for used vehicle leasing.

The best way to find a used car lease is to decide which vehicle you are interested in and call franchise dealerships to see if they offer used car leases on their CPO inventory.

How to shop for one Used car rental

When deciding if a used car rental is right for you, you should always shop around. Just as you should compare prices when shopping for used vehicles, you should contact multiple dealerships to see which offer the best prices.

You should also compare the cost of leasing a used car with the cost of a new car. New car rental deals often come with better finance rates and may also offer incentives and special offers. This cost difference between a new car lease and a used car lease will be lower with used Honda and Toyota cars, while the savings will be greater on luxury vehicles from Acura or Lexus.

The smartest used car rental purchases are for later model year cars that are two to three years old and still under warranty, or that offer extended warranties. Otherwise, you are liable for expensive repairs to a car that you don’t own. Keep in mind that auto insurance is often more expensive for leased cars, so be sure to get a quote from your insurer and factor that into your budget.

As with any used car purchase, you should ensure the car is fully inspected by an independent mechanic prior to rental. You should also use useful online search tools like iSeeCars free VIN checker which provides a free CARFAX or Autocheck vehicle history report as part of its comprehensive VIN checker tool. A complete VIN check will complement the vehicle history report to provide all the important information an interested buyer should know before buying a used car.

How it works Used Car Rental Works?

Used car leases are similar in structure to new car leases. Just like a new car lease, the lender will base payments on the residual value of a car compared to its selling price. The lender will also determine a monetary factor, which is the vehicle’s interest rate. Just as used cars generally have higher interest rates than new cars, a used car lease will likely have a higher interest rate than a new car lease when it comes up. is a car loan. However, because a used car has already suffered its depreciation, the used vehicle will have a lower selling price and a lower rate of depreciation, resulting in a lower monthly payment than a new car lease. . The savings between new and used car rentals tend to be greatest when renting luxury cars.

Used car leases: Advantages

The main attraction of leasing a used car is the lower monthly payments. It may also allow you to afford a more expensive car than you would be able to afford with a new car lease. If you don’t care about having the latest car technology, but want to get rid of a car before it gets too old, a used car lease could be an attractive option. Plus, you might have lower car insurance costs than you would pay for a new car.

Used car leases: Disadvantages

By renting a used car, you are responsible for repairs after the vehicle has exceeded its warranty. You will also not be able to take advantage of the main advantage of new car leasing, which is to drive a new car equipped with the latest technology. By leasing a used car, although the payments are likely to be lower, you’re still making monthly payments and maintenance costs for a vehicle you don’t own. You may also be charged at the end of the lease if the vehicle is not in good condition or if you drive it beyond the mileage limit stated in your rental agreement. In many cases, buying a practical used car and keeping it for several years will save you money in the long run compared to leasing.

Conclusion

If you’re interested in leasing a car and want to lower your monthly lease payments or upgrade to a more expensive vehicle while keeping costs down, a used car lease might be a smart move. However, used car rental deals are hard to come by, so you should be prepared to do some extra legwork to find the best used car rental deals. Also, be sure to compare prices and lease rates with other used CPO leases as well as new vehicle leases. Avoid leased vehicles that extend beyond a car’s warranty so that you are not liable for costly repairs.

Finally, once the term of your lease is over, you will have the option of doing a lease buyout with a purchase price based on the residual value of the car. If you don’t buy the car, you will have to find another car to rent. That’s why buying a used car outright, which you can keep for as long as you want, is often the smartest long-term financial decision.

More on iSeeCars.com:

If you are interested in a new car or a used car, be sure to check out iSeeCars award-winning rewards car search engine. It uses advanced algorithms to help buyers find the best car deals among all used cars and provides key information and valuable resources, like iSeeCars free VIN check report and Best cars rankings. Filter by brand, model, price, CPO vehiclesand special features to find the best deal on your next vehicle. This article, Can you rent a used car? originally appeared on iSeeCars.com.