Leases signed in 2023 are ending this year, and Edmunds projects about half a million more off-lease cars than in 2025. A three-year-old car off a lease can be a good buy. Five checks tell you whether this one is.
Check its recalls, its certified warranty, its out-the-door price, the loan, and for an electric car, the battery. Skipping any one of them can cost you thousands.
The short version
- • More off-lease cars means more choice, not automatic bargains. Compare several.
- • Run the VIN at NHTSA. Recall repairs are free, and 2023 CR-Vs and GM's 6.2L trucks are covered by recalls.
- • Read when the certified warranty starts. Toyota's 7-year powertrain coverage starts when you buy; Honda's and Ford's started when the car was new.
- • Get the out-the-door price in writing. In California, a used car up to $50,000 now comes with three days to cancel.
- • On a $25,000 used loan over 60 months, a 661 to 780 score pays about $30 a month more than 781 or higher.
- • The federal used EV credit ended September 30, 2025, and the new car-loan interest deduction does not cover used cars.
Why There Are More Three-Year-Old Cars
Leasing fell hard during the chip shortage. In the second quarter of 2021, 28% of new cars were leased; a year later, under 20% were (Experian). It climbed back from 2023 (Experian), and a 36-month lease signed then ends now.
Edmunds projects off-lease supply this year up about half a million cars from 2025, a 26% jump (Edmunds, May 2026). More supply gives you more cars to compare. It does not make any one of them a good buy.
Key Takeaway
Shop several off-lease cars and check each one the same way: recalls, warranty, out-the-door price and loan.
Run the VIN for Open Recalls
Enter the car's VIN at NHTSA's recall lookup before you sign. Recall repairs are free at the brand's dealer, and the lookup shows which recalls are still open on that exact car. A very recent recall may not show up by VIN yet, so search the year, make and model too.
Two recalls reach many cars coming off 2023 leases (NHTSA recall reports, checked October 4, 2026):
- Honda and Acura steering, recall 24V-744: the 2023 to 2025 CR-V and HR-V, the 2022 to 2025 Civic and the Acura Integra. The steering can stick for a moment and take more effort to turn. The fix is a new worm gear spring, with grease added as needed.
- GM's 6.2L V8, recall 25V-274: the 2021 to 2024 Silverado 1500, Sierra 1500, Tahoe, Suburban, Yukon and Escalade with engines built from March 2021 through May 2024, so check the VIN rather than the model year. Crankshaft or connecting rod defects can damage the engine or make it fail. The fix is an inspection, then engine repair or replacement, or thicker oil if the engine passes.
The GM engine fix is under investigation
In August 2026, NHTSA opened an investigation into engines that failed after the recall repair, citing 499 complaints (NHTSA). On a 6.2L truck or SUV, ask for the recall paperwork, and weigh a certified powertrain warranty more heavily than usual.
Key Takeaway
Run every VIN at NHTSA before you sign, and ask for proof that open recalls were fixed. A recall repair costs you nothing, so ask the dealer to have any open one done before you take the car.
What the Certified Warranty Covers
Certified means the brand's own program, and each brand has tiers. On a three-year-old car, the tier and the date the coverage starts matter more than the badge.
| Tier | Qualifies | Coverage |
|---|---|---|
| Honda | ||
| HondaTrue Certified | Up to 6 years, under 80,000 miles | Powertrain 7 years or 100,000 miles from first sale. The rest 2 years or 100,000 total miles.* |
| HondaTrue Used | Up to 10 years | Everything 6 months or 10,000 miles.* |
| Toyota | ||
| Gold Certified | Up to 6 years, 85,000 miles | Powertrain 7 years or 100,000 total miles from your purchase. The rest 12 months or 12,000 miles. |
| Silver Certified | Up to 10 model years, 125,000 miles | Powertrain 12 months or 12,000 miles. Nothing else. |
| Ford | ||
| Gold Certified | Under 6 years, 80,000 miles | Powertrain 7 years or 100,000 miles from first sale. The rest 12 months or 12,000 miles.* |
| Blue Certified | Under 10 years, 150,000 miles | Everything 90 days or 4,000 miles.* |
*From your purchase, or from the end of the new-car warranty if that comes later. From each automaker's own certified pages, checked October 4, 2026. Honda also has a Certified EV tier. Toyota Silver excludes cars 6 model years old or newer with 60,000 miles or less. Ford's tiers carry a $100 deductible, and Blue Certified takes many non-Ford cars.
The start date is the difference. Toyota's seven years start the day you buy. Honda's and Ford's started when the car was first sold or leased, so a three-year-old car has about four years of powertrain coverage left.
Key Takeaway
Get the tier and the coverage dates in writing, and make sure "certified" means the brand's program, not only the dealer's.
Get the Out-the-Door Price
Ask for the out-the-door price in writing: the car, every fee, tax and registration, as one number. It is the only figure that shows what the ad left out.
Reconditioning, prep and add-on charges are where an advertised price grows. Ask what each one is. If you did not ask for an add-on, ask for it to come off, or for the price to come down by the same amount. The doc fee is set by the dealer, and some states cap it: see your state's limit on our doc fee map.
California: new rules since October 1, 2026
- • Three days to cancel a dealer's used car priced at $50,000 or less, if you have driven it no more than 400 miles. The dealer can keep a restocking fee of 1.5% of the price, at least $200 and at most $600, plus $1 a mile past 250 miles, up to $150.
- • The right does not apply when you buy out the car you leased.
- • Dealers cannot charge for add-ons that give you no benefit. The law's examples include nitrogen tire fill under 95% purity and oil changes on an electric car.
- • Ads must show a total price that includes dealer markups and installed add-ons. Taxes, government fees and the doc fee can still be listed separately.
Source: the CARS Act, SB 766, and the California DMV.
Key Takeaway
Negotiate the out-the-door number, not the monthly payment. Any line you did not ask for is open for discussion.
Know What Your Score Costs on a Used Loan
Used-car loans cost more than new-car loans at every credit level, and the steps between tiers are wide. On $25,000 over 60 months, a 661 to 780 score pays about $30 a month more than 781 or higher. A 601 to 660 score pays about $94 more.
| Credit Score | Average Used-Car Rate | Payment on $25,000, 60 Months |
|---|---|---|
| 781 to 850 | 6.29% | $487 |
| 661 to 780 | 8.81% | $517 |
| 601 to 660 | 13.93% | $581 |
| 501 to 600 | 19.10% | $650 |
| 300 to 500 | 21.62% | $685 |
Average rates, second quarter of 2026, by VantageScore 4.0 range. Source: Experian, State of the Automotive Finance Market. Payments computed, before tax and fees.
Ask about the brand's certified rates. Toyota offers new-car financing rates on Gold Certified cars in select regions (Toyota). Honda's certified offers through November 2, 2026 cover 2025 and 2026 models, and its HondaTrue Used offers cover 2020 to 2022 models, so a 2023 Honda misses both (Honda).
Get a quote from your bank or credit union before you sit down with the dealer. The CFPB says auto loan inquiries made within 14 to 45 days of each other generally count as one (CFPB), so comparing does not cost you points. For leases and new-car loans by brand, see what each credit score costs.
The new federal deduction for car-loan interest covers new cars only. A used car's loan does not qualify (IRS). Our interest deduction guide has the rules for new cars.
Key Takeaway
Walk in with a loan quote of your own, and compare the dealer's rate with your tier's average before you look at the monthly payment.
Used EVs: The Credit Is Gone
The federal used EV credit, up to $4,000 on a car priced at $25,000 or less, ended for cars bought after September 30, 2025. The $7,500 credit leasing companies could claim on the electric cars they leased out ended the same day (IRS).
So no federal credit lowers the price of a used EV now. Judge one on its price, its range and its battery, and ask for a battery health report before you sign. Some automakers kept paying lease cash on new EVs after the credit ended, so price a new EV lease before you buy a used one.
Key Takeaway
Price a used EV against a new EV lease, and get the battery's health in writing.
Know before you sign.
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