Since the real owners of leased vehicles are the leasing companies, they don’t want to see their cars come back in need of repairs. And they would rather not have to sue their customers to recover repair costs—but they will if they have to. To encourage people to get extended warranties on used cars, many lenders will offer better deals on cars that have this coverage (and worse deals on cars that don’t).
Don’t automatically assume that a lease is a good deal because the warranty is included: they might be inflating the price of the car to cover it. Make sure you research the wholesale and retail values of a vehicle, and perform your own lease calculations, before signing any contracts.
When you add up all the costs of leasing a used car (including maintenance and repairs), you might find that you could get a better deal on a new car with a factory- subsidized lease. If you’re still determined to lease a used car, a “certified vehicle” with a free warranty could turn out to be your best bet, especially if the warranty lasts as long as the lease.
