Should You Buy an Off-Lease Car?

Buying a vehicle that’s been returned on a lease is a good way to get a relatively new and lightly used car. Some off-lease cars even have some of their factory warranties remaining. If you’re uneasy about buying a used vehicle, getting an off-lease vehicle that’s being sold as certified pre-owned can add an extra layer of peace of mind with factory-required preparation and additional warranty backing from the automaker.

Related: What Does It Mean to Lease a Car?

Off-lease vehicles attract budget-conscious shoppers looking to upgrade their ride at a lower price, as the lessee already paid the initial new-car depreciation in value. Even more shoppers these days are looking for good 2- or 3-year-old vehicles coming off leases because new cars have risen dramatically in price in recent years — the average new-car list price was $48,976 in August 2024, per Cars.com data — and supplies of popular used vehicles continue to be low as automakers continue to recover from pandemic-era shortages. The trade-off for the savings on an off-lease vehicle, however, is that you still are buying a used car with inherently more risk than with a new car.

Advantages of an Off-Lease Car

They have low mileage

Because of lease mileage limits — typically about 12,000 miles a year — and high excess mileage charges, most off-lease cars won’t show high numbers on the odometer.

Most are gently used

Off-lease cars tend to show just normal wear and tear because of lease penalties for excess defects.

They’ll likely be safer and have more tech features than what you’re driving now

Safety, media and convenience technology on mainstream vehicles has changed markedly even in just the past five years. Meanwhile, the average age of a vehicle on U.S. roads in 2021 is at an all-time high, per S&P Global Mobility: 12.6 years old. A 2- or 3-year-old vehicle could be a big change from your current daily driver.

They might have some warranty left

Off-lease cars from some brands may still have some factory warranty left that can be transferred to a second owner.

Off-Lease Vehicles Still Have Risks

It’s still a used vehicle and requires the same checks

Always get a vehicle history report from a reputable vendor like Carfax to verify details including previous ownership, type of use (you want personal use, not fleet) and mileage, as well as major damage or accidents. You can buy one, but many dealers will provide one for free. Many of the used-car listings on Cars.com also offer a free report by clicking on the Carfax link in the listing.

The vehicle history report won’t tell you everything

However, a vehicle history report doesn’t include all accidents, only those reported to police or insurance companies. It also won’t tell you how the off-lease vehicle was treated, and it may be thin on maintenance details since required maintenance in the first few years is usually minimal. You should also consider budgeting for an independent mechanic to inspect the vehicle before you buy.

You should budget for routine repairs relatively soon

Off-lease vehicles are likely to still have their factory battery, tires, and brake pads and rotors. These “wear items” won’t be covered by any remaining factory warranty, and their replacement as needed will be on you.

What About CPO?

Many off-lease vehicles are sold as CPO — a special category of late-model, low-mileage used cars that come with some added warranty. A CPO designation can add peace of mind about the risks of a used car in exchange for a higher price — generally a few hundred to thousand dollars — than comparable non-CPO cars.

The CPO tag means that the used vehicle has passed the automaker’s prescribed inspection and that any mechanical or cosmetic issues have been fixed. Furthermore, a CPO vehicle typically comes with an automaker-backed bundle of extras, such as an extension of the factory warranty, a vehicle history report and sometimes roadside assistance.

If a CPO used vehicle sounds good to you, you can search for certified used vehicles near you among Cars.com’s nationwide listings.

More From Cars.com:

• How to Negotiate a Car Lease
• Should I Buy a New, Used or Certified Pre-Owned Car?
• How to Get Preapproved for a Car Loan — and Why You Should
• Should You Buy a CPO Electric Car?
• Pros and Cons of CPO Versus an Extended Warranty

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