Whether you fall out of love with your car, have financial reasons, or move to a new place with better public transit offerings, you will have to decide on your car. The good news is you can sell a leased car and even make it a profitable experience if you do it right. Due to the high demand for used vehicles and a shortage in used car inventory, it is possible to sell a leased car to the right buyer without any loss. However, there are plenty of things you will have to keep in mind before you can sell a leased car.
Why you should sell your leased car?
Car lease contracts allow the lessee to return the car at the end of the lease term or purchase it in a buyout. However, there are exceptions to everything, and sometimes a lessor may need to sell a leased car. If you have leased a car and do not require it anymore due to a change in your work or driving needs or simply do not want to keep it, selling it either to a dealership or under lease to a third party can get you some money.
If you have taken good care of your vehicle, and there is no wear and tear to maintain its residual value, you may be able to sell your leased car successfully.
What to do if you want to sell a leased car?
Before putting up your leased car for sale, you must determine if it is the right move. Here are three steps to determine if selling a leased car is worth it and if you will make a profit.
Step # 1 – Understand your car’s equity
First of all, you must determine your car’s equity or find out how much it is worth. It can be done in the following ways:
Find out the buyout price from the leasing company – Contact the leasing company with which you have signed the contract to learn about the buyout price. It is the amount the leasing company would charge you along with the fees to buy the car from them.
Check out the current market value – You can also check out car value estimates at some reliable websites by entering the make and model of your car along with its year, condition, VIN, etc. If the market value is higher than the residual value as estimated by the leasing company, you can make money by selling the car to another dealer or even a private party.
Do your calculations – Do not forget to compare the residual value of the vehicle to the current market value. If the current market value is greater than the residual value, buying the vehicle is wise, especially if you can negotiate a good buyout price that helps you come out ahead.
The figures play a key role in the buyout, so before making any decisions, check out several current resources to get the best value for your car.
Step # 2 – Consider buying the car yourself
If you are interested in selling a leased car, buying it out for yourself offers several advantages as compared to selling it back to a dealership or a third party. First of all, you are already familiar with it as you have been driving it. If you have maintained it well, it has low miles and served you well, these are sufficient reasons for keeping the car.
Also, if you still need a car, you will be paying more for a leased vehicle or a brand-new car. In this case, you are likely to save money with a buyout and can continue driving it for years to come.
Step # 3 – How to sell the leased car
If you have made up your mind about selling your leased car, there are several options to do it:
Sell it to a private party – You can sell your leased car to a family member, a friend, a coworker, or even a stranger interested in buying the vehicle. You can purchase the car from the leasing company and then sell it to a private party, or you can do a third-party buyout which means you can sell the car without buying it from the leasing company.
If they authorize it, they may even facilitate this transaction, making the process easy. Once you have received the payment from the new buyer and paid off any final fees you owe on the car, the ownership is transferred. This way of selling may require some time and homework, but it saves you from paying sales tax.
Sell to a dealer or back to the dealership – These days many car dealers are ready to buy a leased car and pay a high price as there is a shortage of good cars in the market. You can also sell your leased car back to the dealership that did the lease and get money or trade-in value for purchasing a new vehicle.
Sell to an online service – Selling your lease to an online service is also a good option. Many companies purchase cars or facilitate sales. Make sure to check the value of the car and compare it to the lease buyout value before committing to sell.
Read more: How to Lease a Car Through Your Business
Some other options for getting out of a lease early
If selling or buying does not work for you, there are other options too for ending your car lease before time.
They include:
Lease transfer – You can transfer or swap your lease to someone looking for a used car lease. Some leasing companies allow you to transfer the lease and monthly payments to another person.
Lease trade – When your lease term comes to an end, you can trade in the car for a new leased car. However, if you think this is the correct time to purchase a new car, check out for special incentives at the dealership. They may be ready to waive certain lease turn-in fees if you buy a new car from them.
Return the car – You can also return the car as the lease term comes to an end. Make sure to read the lease agreement carefully before taking back the car to see if you have kept to the stated requirements for miles driven, wear and tear, and any other stipulations. Not adhering to the lease terms can result in heavy penalties in the end. If you have driven excessive miles or the car has been excessively damaged, these penalties can add up to thousands of dollars so be careful.
Is selling your lease a good move?
Yes. When you choose the right option and work on it, selling your lease before time may be a good idea. You can also make a profit if the market demand for your car is high and the car has minimum wear and tear, low mileage and carries a high market value.
Ultimately the decision to sell your lease comes down to the value of the car and the effort you want to put into making a good transaction.
Read more: Assuming a Lease
Visit eAutoLease.com to learn more about selling a leased car and how you can do it right. With more information and expert advice, you can make the best decision and make a profitable deal.
