Is Used Car Leasing Cheaper?

Used car leasing can offer lower monthly rentals than leasing a comparable new vehicle, while also giving you access to higher-specification models and shorter contract options. The cost depends on the vehicle, age, mileage, specification and lease terms, so comparing individual deals is important.

Why Can Used Car Leasing Be Cheaper?

A used car has already been registered and has previously been driven, so its value is lower than when it was new. This can be reflected in the cost of leasing the vehicle.

The difference isn't the same for every car, as lease pricing considers factors such as the vehicle's current value, expected future value, mileage and contract length.

This means comparing individual used car lease deals is the best way to see what represents good value.

What Affects the Cost of a Used Car Lease?

Several factors can influence the cost of a used car lease.

Vehicle age and mileage

The age and mileage of a used vehicle can affect its value and therefore its lease cost. The vehicle's condition, history and remaining useful life can also influence the rental.

Make, model and specification

Different vehicles depreciate at different rates. A used premium or higher-specification model may therefore give you access to more equipment for a monthly rental that would be harder to justify when the vehicle was new.

Contract length

The length of the agreement affects the monthly rental. Selected used car lease deals are available from 12 months, which can be useful if you don't want to commit to a longer contract.

Annual mileage

Your agreed annual mileage also affects the rental. A higher mileage allowance will generally increase the monthly cost, so it's important to choose an allowance that reflects how much you actually drive.

Initial rental

The initial rental is paid at the start of the agreement. Choosing a higher initial rental can reduce the monthly payments that follow, so it's important to consider the initial rental and monthly payments together when comparing deals.

Is a Used Car Lease Always Cheaper?

Used car leasing can offer good value, but the saving varies between vehicles. Factors such as depreciation, specification and current leasing offers can affect the difference between a new and used model.

For the best comparison, look at similar vehicles with the same contract length and mileage allowance, rather than comparing the monthly rental alone.

Can Used Car Leasing Give You More for Your Money?

It can. Because a used vehicle has already experienced some depreciation, leasing can sometimes make higher-specification or premium models more accessible than they would be when new.

This can be particularly appealing if specification and equipment are important to you.

Is Used Car Leasing Cheaper for Personal or Business Use?

Used car leasing is available for both personal and business customers, with the most suitable option depending on your circumstances.

For personal leasing, you'll typically want to compare the initial rental, monthly payments, contract length and mileage allowance.

For business leasing, the tax position depends on factors including how the vehicle is used and the circumstances of the business. VAT recovery and other tax considerations should be assessed based on your individual circumstances.

Can I Get a 12-Month Used Car Lease?

Yes. Selected used car lease deals are available on contracts starting from 12 months.

A shorter contract can be useful if you want to try a particular vehicle without committing to a longer lease. This can also make used leasing an option for drivers considering an electric vehicle for the first time.

If you're considering a used EV, read our Used EV Leasing Explained: The Complete Guide to find out more about how used electric car leasing works.

Availability of 12-month contracts depends on the vehicle and current stock.

How Should I Compare Used Car Lease Deals?

Don't compare deals on the monthly rental alone. Consider:

• Initial rental
• Monthly rental
• Contract length
• Annual mileage
• Vehicle age and mileage
• Specification
• Maintenance

A deal with a lower monthly rental isn't necessarily the better option if it has a higher initial rental or different contract terms.

Browse Used Car Lease Deals

If you're considering a used car lease, Gateway2Lease has a selection of quality-checked vehicles for personal and business customers, with full maintenance included and selected contracts available from 12 months.

Browse our latest used car lease deals see the vehicles currently available.