Learn More!
Guide
Best 7 Sports Cars Under £50k
Looking for a thrilling drive without breaking the bank? Then check out our recommendations.
Guide to Leasing Used Cars: Benefits and Considerations
By Phill Tromans, Motor Journalist.
Want to lease a used car but unsure whether it’s right for you? Read our guide to find out everything you need to know.
If you’ve ever wondered “can you lease a second-hand car?”, then the answer is yes, and in the UK it’s a growing part of the market. While many people think leasing only applies to brand-new vehicles, that’s not the case.
For some drivers, leasing a second-hand car can be a smart middle ground. You still get fixed monthly payments and no headaches about selling the car later, but the leasing company can afford to offer it for less. Because a used car has already gone through its steepest depreciation, the value lost during your lease is lower, which usually means cheaper monthly payments.
At Select Car Leasing we have used cars available on both personal and business contract hire agreements, with terms from 12 to 48 months and there are optional maintenance packages available to factor servicing into your budget.
However, used car leasing is not automatically the right choice for everyone. If you’re considering it, you should understand exactly how used leasing works, what’s included, and what to check before you sign an agreement.
What is used car leasing?
Used car leasing is exactly what it sounds like: you lease a car that someone else has already owned or leased. In most cases, these are relatively young cars that have been inspected, prepared and offered again on a fresh lease agreement. Select’s used-car leasing programme, for example, focuses on in-stock cars that we’ve made available again for both business and personal customers.
Leasing a used car works much like a standard lease, and we’ll explain the details below. Broadly speaking, you make fixed monthly payments for the duration of the deal and at the end of the lease, you hand the car back.
How is used car leasing different?
The biggest difference between new-car and used-car leasing is the starting point. With a new-car lease, you’re the first user of a factory-fresh car, and you’re financing the heaviest part of its depreciation. With a used-car lease, the first drop in value has already happened, which often lowers monthly costs.
There are a few other differences too. The choice is usually more limited because you’re selecting from available stock rather than ordering new. Having said that, you can often get a higher-spec car for less.
That also means that delivery can be quicker. Because used lease cars are already in stock, your chosen car can be sent out to you almost immediately with no waiting for a build slot.
On the other hand, the warranty position could be different; a used lease car may still have some manufacturer warranty remaining, but you should always check exactly what cover is included for the full contract term. If the warranty runs out while you’re the car’s keeper, you may be responsible for some repairs, depending on what cover is included.
How does used car leasing work?
It’s all very straightforward. Choose a car, and decide on the lease length, the annual mileage and the size of the initial payment (the larger the initial payment, the smaller the monthly costs).
The leasing company or finance provider will carry out identity, affordability and credit checks to make sure you’re able to make the monthly payments on time, and to verify that you are who you say you are.
Once approved, you sign the agreement, pay the initial rental amount, and the car is delivered to you, or you collect it. During the contract, you’ll have to keep up the monthly payments, stay within the mileage allowance (or pay excess mileage charges at the end), maintain the car properly and return it in an acceptable condition at the end.
Interested in used car leasing? Check out our used car special offers!
What are the benefits of used car leasing?
The main benefit? Value. Because the car’s not brand new, the monthly payment can be lower than leasing the same model when it’s factory fresh, and that can make higher-spec or higher-end cars more financially attainable.
Another advantage is predictability. You know what the monthly payment is, you know the contract term, and you don’t need to worry “best price?” offers and awkward haggling when trying to sell. That can be particularly appealing if you like to change cars regularly.
For business users, there can be accounting and VAT advantages depending on the agreement and how the car is used. If you add a maintenance package, you can make running costs more predictable still.
The flip side is that you’re leasing a car that is not fresh from the factory. That is not necessarily a problem, but it means the overall condition might not be quite so sparkly new, and tyre life, service history and remaining warranty deserve more attention than they might on a brand-new lease.
Is leasing a used car better than buying?
Sometimes yes, sometimes no. It depends what you want from the car and how long you plan to hang on to it.
If your priority is a lower monthly outlay than a new lease, without the risk of owning an ageing car long-term, used leasing can make a lot of sense. It can also suit drivers who like fixed costs and prefer not to commit a large lump of cash to buying a car outright.
However, buying a used car may work out better if you want long-term ownership, no mileage restrictions and the freedom to modify or sell it whenever you want. Once finance is paid off, the car is yours. With leasing, you never own the car, so you’re paying for use rather than building equity.
The real comparison is often not “better or worse”, but which trade-off suits you.
What documents are required to lease a used car in the UK?
The exact paperwork can vary by supplier, but you’ll usually need proof of identity, proof of address, bank details and information that supports your affordability assessment. In practice, that often means a driving licence, recent utility bill or bank statement, and income details if requested.
For business leases, you may also need company registration details, trading history and director information. Because lease providers run credit and affordability checks, having accurate and up-to-date information is important.
It’s also a good idea to check the contract for admin fees, maintenance terms, excess mileage rates and end-of-lease conditions before signing. These can add up, so dig into the fine print.
For more information, check out our guide to what documents you need to lease.
Frequently asked questions
There is no single magic number. Lease providers don’t all use the same scoring model, and approval isn’t just based on your credit score. They also look at income, affordability, existing commitments and your overall credit history. A good credit profile can definitely improve your chances of being accepted at the best rates, but some providers may accept applicants with lower scores or more complex credit histories.
There shouldn’t be any “hidden” fees if the agreement is presented properly, but there can absolutely be extra charges that people could overlook. The main ones are excess mileage, damage beyond fair wear and tear, missed payments, and sometimes admin charges, depending on the provider.
Sometimes, yes. Many funders will consider a short extension of your deal, but it’s never guaranteed and usually depends on the finance provider, the car and your payment history. The best approach is to ask well before the contract ends, because any extension will need formal approval and some revised paperwork.
At the end of the lease, just return the car to the leasing company. The car will be inspected against mileage and fair wear and tear standards, which will be explained to you at the start of your agreement. If everything is in order, you simply hand it back and the contract ends. If not, you may face extra charges.
For more information, visit our guide pages below:
Learn More!
Guide
Why So Many Drivers Choose Luxury Cars – Should You?
Thinking about buying a luxury car? Learn why so many UK drivers still invest in premium models and whether it’s the right move for you.
Learn More!
Guide
Your Complete Guide to Lifestyle Driving
Need a car that keeps up with your lifestyle, every step of the way? Our guides will tell you everything you need to know about finding your perfect match.
Select Car Leasing are a credit broker not a lender.
UK's most trusted car leasing broker
Rated 4.9 out of 5 - 48,932 reviews
The UK's largest leasing broker
Leasing all leading makes and models
Affordable car lease deals
Industry leading competitive rates
Don't just take our word for it. We're rated at 4.9/5 on independent reviews website Trustpilot from over 48,932 genuine customer reviews
This is the second car i’ve leased through Select. Alex was very helpful in finding the right deal for me and made it a very smooth process. Very pleased with the car, thanks Alex.
It was very easy and quick to order my vehicle Herbert was very professional and handled my order of a car very well.
Good comunication in the beginning, helpful in finding and setting the deal. Courteous and considerate throughout, and gave good feedback and updates, as to delivery expectation.
