Trading in a Leased Car for a New Lease
Like most car owners, you may also love the idea of leasing a car because of its many benefits, including low monthly payments and the fact that you can simply hand back the vehicle at the end of the lease.
But what happens when you want to trade in a leased car? Knowing about this is important as it can help you make the best decisions when it comes to wanting to switch your current leased car for something different.
If you need advice about your lease, Positive Lending Solutions can help with all your car loan needs.
How to trade in a leased car
Many people aren’t aware that they can trade in a leased car. In fact, it can be a really simple process, which can let you get the vehicle that you want at the right time.
You’ll need to be aware of the terms of your lease and figure out where you stand if you want to trade in a leased car early.
You’ll need to be aware of the pay off value on your lease contract. This is the current cost you’ll incur if you decide to terminate your lease.
When you come to trade in a leased car, a dealer will be the one paying off the lease. The cost of this pay off will then go against the trade in value of your leased vehicle. It’s inevitable that the lease pay off amount will be higher than with a financed purchase of a car, but you need to remember the other benefits you’ve gained with leasing a car.
To find out your lease pay off amount, you’ll just need to call your leasing company (their details should be on your lease contract). Depending on the amount to pay, you could consider paying off all the remaining payment in one lump sum, although you’ll need to be aware of early repayment or exit fees here, and work out the best option for you.
Working with the dealer
By working with a dealer who you trust, you’ll be allowing their used car department to evaluate your leased car and offer you a trade in value that they think is appropriate.
From this, you can work out if you have positive or negative equity:
- Positive equity - When the trade value is greater than the lease pay off amount. This means that you can then apply the excess funds to the purchase or lease of your new car
- Negative equity - This is when the trade value is less than the pay off amount and you may be required to pay towards the new vehicle financing.
It’s really important to find the right dealer whom you know and trust to ensure that you get a trade in value that you think is fair and appropriate for your vehicle. At Positive Lending Solutions, we work with different car finance options and can help with car leasing options that could work for you.
Figuring out the costs
Essentially, you need to figure out whether trading in a leased car is a more expensive option or whether you could be looking at good value on a new vehicle lease.
You’ll probably need to be prepared to put in at least some cash to trade your leased car early, so make sure you have savings ready if you decide to trade in a leased car.
Some people may benefit from trading in a leased car for a new lease if they have exceeded their leased mileage allowance – going above this can result in very expensive fees mounting up so keep aware of being in this situation.
How to make the change
One of the first steps you’ll want to take is to call Positive Lending Solutions to discuss trading in a leased car. We have decades of experience and teams of expert brokers who have access to dealers and lenders who can help.
Give yourself the peace of mind by allowing us to help you with the process to trade in a leased car and enjoy a new vehicle sooner than you think.
Talk to us for expert advice and support on trading in a leased car.