“Can I lease a used vehicle?” – this is a question we get asked a lot here at StreetFleet and obviously, with the current delays in new car deliveries, it is a hot topic at the moment.
The short answer is yes, you can lease a used car(you can even lease your own car back to yourself or your business) under either an operating lease or a novated lease arrangement, however there are some rules around this.
Firstly, in many cases when a lease reaches the end of its term often the lessee chooses to extend that lease. Behind the scenes this is basically a used car lease where we are refinancing a balloon or the value of the vehicle for a further term, so leasing a used vehicle is much the same and must meet the same criteria:
- Age of vehicle – generally at lease end we don’t want the asset to be more than 7 years old, but in some cases we can lease a vehicle that will be 12 years old at lease end.
- Licensed dealer – while the preference is to always purchase a vehicle from a licensed dealer, it is possible to do a private sale, however additional inspections and paperwork are required.
- Value of the vehicle – We might mention that the vehicle “has to book” which means the price of the vehicle must be in line with the financier’s expectations. They usually use RedBook or Glass’s Guide to measure this.
- Sale and lease back – if you own the vehicle outright already (i.e. it is not under finance to anyone else) then we can also buy the vehicle from you and lease it back to you under a sale and leaseback arrangement. This would follow much of the same process as a private sale transaction.
Of course, the normal lending criteria and terms and conditions apply, but if you are in the market for a lease on a used vehicle please reach out to us today at www.streetfleet.com.au/contact