The Leasing Company Must Agree to the Trade
Before you go to the dealership to trade in your car, you should call the leasing company to find out if doing so is possible. In some cases, the dealer may be willing to do so on your behalf if it increases the odds of a deal getting done. Assuming that you are approved to trade in your vehicle, it may be a good idea to call the leasing company to find out when the lease ends and what the residual value of the car is.
The Dealership Must Agree to the Trade
The dealership that you take the car to must be willing to accept your vehicle as a trade. Typically, dealerships will take most cars regardless of their make, model and condition. However, you should be aware that you may not get as much as you wanted for the trade based on the condition of your vehicle as well as market conditions in your area. Therefore, make sure that you know how much the car is worth before you go to the dealer. In fact, it may be a good idea to get a tentative trade value from a salesperson before you head to the dealership.
You Can Build Equity in Leased Cars
It may be possible to build equity in a leased car. When you lease, the leasing company assumes that you are going to drive a certain number of miles and put a certain amount of wear and tear on the vehicle. If you drive fewer miles than called for in the lease, it may mean that the car is in better condition than it was projected to be. This may mean that it is worth more than the original residual value. The difference between what the car is worth and the residual value may be used as a down payment on your next car. You may also be given the opportunity to pocket the difference in cash.
What If You Can’t Trade In Your Leased Car?
In the event that you can’t find a good trade deal, you may be able to transfer the lease to another person. Leasing companies generally don’t mind if you transfer your lease assuming that the person who assumes it has sufficient income and a sufficient credit score. If you are able to transfer your lease to another person, you are under no obligation to make further payments. You may want to take pictures of the car before transfer to ensure that you aren’t blamed for damage done to it by future lessees.
Leasing a vehicle may provide many benefits to those who are on a budget. However, it may complicate the process of completing a trade in. While it isn’t impossible to trade a leased vehicle, you may want to find out before you agree to the terms how easy it may be to pull off.