If you are researching the pros and cons of leasing a car in Denver, you generally find the same advice: Leasing gets you a new car every three years, while buying builds equity. 

That is true, but it misses a massive opportunity. 

Most drivers do not realize you that can lease a used vehicle. This strategy often sits in a sweet spot for our clients, offering the low monthly payments of a lease with the lower price tag of a pre-owned vehicle. 

At Centennial Leasing & Sales, we believe you deserve the full picture. Here is a transparent breakdown of the advantages and disadvantages of leasing, with a special focus on the used market. 

---

The Pros of Leasing a Used Car 

Leasing a pre-owned vehicle provides a unique opportunity to combine high-end features with an intelligent financial strategy. For many of our clients in the Rocky Mountain region, a used car lease is the secret to driving a premium vehicle without the premium price tag. Understanding these benefits helps you maximize your value when shopping in the local market. 

1. Significantly Lower Monthly Payments 

This is the biggest draw. When you lease a used car, the Capitalized Cost (the price of the car) is lower because the first owner already took the biggest depreciation hit. You can often drive a luxury SUV for the same monthly payment as a brand-new economy sedan. 

2. You Pay for Less Depreciation 

New cars drop in value rapidly, sometimes 20% in the first year. A 3-year-old vehicle has a much flatter depreciation curve. Since a lease payment is calculated based on how much value the car loses while you drive it, a stable car equals a lower payment. 

3. Shorter Commitments 

If you like changing vehicles often, this is ideal. You are not married to a 6-year loan. You drive the car for 24 to 36 months and then walk away or trade it in for something else. 

4. Lower Insurance Costs 

Generally, insurance premiums are tied to the vehicle’s replacement value. Since a used car is worth less than a brand-new one, your premiums may be lower. 

The Cons of Leasing a Used Car 

Every financial decision involves a trade-off, and it is vital to understand the responsibilities that come with a pre-owned lease. While the financial savings are real, used car leasing introduces risks that do not exist with a new car. You need to weigh these carefully. You need to weigh these carefully to verify they align with your comfort level and long-term goals. 

1. The “Warranty Gap” Risk 

A new car lease is almost always covered by the factory bumper-to-bumper warranty for the full term. A 3-year-old car might have its original warranty expire halfway through your lease. If the transmission fails in month 20, you are responsible for fixing a car you do not own. To mitigate the risk, we strongly advise including an extended service contract in the lease to cover this gap. 

2. Maintenance Costs Are Higher 

New cars need oil changes and tire rotations. Used cars need those too, plus they may eventually need brakes, batteries, or tires. You are responsible for maintaining the vehicle in good working order before you return it. 

3. The Tech Isn’t “Cutting Edge” 

If you absolutely must have the newest autonomous driving features or the latest infotainment screen, a used lease might disappoint you. You are driving technology that is 2-4 years old. 

4. Harder to Find 

You cannot just walk into any dealership and order a “used lease” in the color you want. The inventory is limited to what is available, and not all used cars qualify for leasing programs. 

General Leasing Deal-Breakers 

Leasing is a powerful tool for the right driver, but it is not a universal solution for everyone. Whether the car is new or used, the fundamental structure of leasing has strict rules. If any of the following apply to you, leasing is likely the wrong choice. 

You Drive Very High Miles 

Leases come with strict mileage caps (usually 10,000 to 25,000 miles per year). If you live in Fort Collins but commute to Denver daily, you will likely crush these limits. The penalty fees at the end of the lease can be substantial (often $0.20 to $0.25 per mile). 

You Are Very Hard on Your Vehicles 

Leased cars must be returned in “reasonable” condition. If you have dogs that scratch interiors, kids that spill heavy liquids, or you park by “feel,” you may face excessive wear and tear charges at the end of the term. 

Which Path is Right for You? 

Deciding between a lease and a purchase is a personal journey that depends on your specific priorities. There is no single “right” answer, only the right answer for your budget and lifestyle. Our goal is to provide the expert guidance you need to make that choice with total confidence. 

• Choose a Used Lease if: You want a luxury vehicle lease experience for a lower price, you drive predictable miles, or you prefer to keep your monthly cash flow free for other investments. 
• Choose to Buy if: You keep cars for 5+ years, you drive very high miles, or you want to customize your vehicle a lot. 

At Centennial Leasing & Sales, we are not tied to one manufacturer or one financial method. We sit on the same side of the table as you. We can run the numbers on leasing vs. buying for the exact car you want, so you can see the difference in black and white.

Contact us today to take the next step toward your ideal vehicle!