When is the Best Time to Trade-in Your Leased Car
Are you tired of leasing a vehicle and not owning one? Wondering when is the best time to trade-in your leased car? Or maybe confused on how to trade in a leased car?
Leasing a vehicle has its pros, but it comes with some significant cons. First and foremost, you have a limited number of miles you’re allowed to put on a leased vehicle without penalties. When you go over, the extra miles add up quickly. There are also penalties for wear and tear to the car. And most importantly, you don’t own the vehicle. It’s time for you to stop leasing a vehicle. Trade-in your lease early and get a great deal on a car or SUV you own.
Now is the best time to head into a dealership and trade up your leased vehicle. Before going in, it’s a good idea to check your car’s value. If you don’t do your research, you might lose out on thousands of dollars you could use toward the purchase of your next vehicle. A huge factor to keep in mind is, because of the COVID-19 pandemic, used car values are at their highest ever. According to experts, your expiring lease might have a more excellent value than expected!
Benefits of Trading in a Leased Vehicle
The great thing about a leased vehicle is that they tend to hold their value exceptionally well. Especially if you made sure to take good care of it, there is a possibility of being in an equity position comparative to the remaining amount you owe. If this is the case, dealers will happily apply that equity toward your purchase of a new vehicle. This can make your monthly payments lower or cause your loan term to be shorter, which is an excellent benefit for you!
When trading in a leased vehicle, you’ll find that the process is slightly different from trading in an owned vehicle. In most cases, you will want to wait until your lease is up because trading in your leased vehicle early or terminating the contract comes with several penalties and fees. On top of that, the contract still must be dealt with. However, there are two great options to get around these situations with a lease.
How to trade in a leased car
- The dealer you go to may pay off the rest of your lease balance and buy the car from the company you have leased it from. In this case, the dealer will take the car’s wholesale value and use it as your trade credit after subtracting the early termination charges they paid.
- Your other option is the dealer covers the rest of your lease payments and then returns the car to the leasing company. You will be given no credit towards a trade-in, but you’re also not incurring early termination fees.
These options help you get out of your lease without having to overpay. And without a lease to worry about, you can now purchase a car you will own yourself.
At Legend Motors of Ferndale, we are a dealership willing to work with you. Reach out to us today for a free appraisal of your trade. We want to help you get out of your lease cycle, and that’s why we offer:
NO EXTRA CHARGE FOR OVER MILEAGE
NO EXTRA CHARGE FOR DENTS BIGGER THAN THE SIZE OF A QUARTER
NO EXTRA CHARGE FOR WEAR AND TEAR INSIDE THE VEHICLE
We carry a wide range of quality used cars, trucks, and SUVs that will suit your needs. Start looking at our inventory right now to find the perfect vehicle for you to own.
FAQs
Can I Trade in My Leased Car Before the Lease Ends?
Yes, you can trade in your leased car before the lease ends, but it’s important to review your lease agreement. Early trade-ins may involve additional fees or charges. However, if your car's current market value is higher than the lease payoff amount, it could be a smart time to trade in and possibly get some equity.
Is the End of My Lease the Best Time to Trade in My Car?
Trading in your leased car at the end of the lease is often the most straightforward option. At this point, you can decide whether to buy out the lease, trade it in for another vehicle, or simply return it. Trading in at lease-end allows you to avoid potential early termination fees.
Can I Trade in My Leased Car Early for a New Lease?
Many dealerships offer lease pull-ahead programs that let you trade in your leased car early to start a new lease. These programs can be beneficial if you’re looking to get into a new car sooner. The best time for this option is often in the last few months of your current lease.
Does Market Value Affect When to Trade in My Leased Car?
Yes, the current market value of your leased car can play a crucial role in determining the best time to trade it in. If the market value of your vehicle is higher than the lease's residual value, it could be an ideal time to trade in, as you may have positive equity that can go toward your next vehicle.
Is It Better to Trade in My Leased Car During Special Promotions?
Absolutely! Dealerships often run promotions, such as trade-in incentives or loyalty programs, which can provide additional benefits if you trade in your leased car during these times. The best time could align with events like holiday sales, end-of-year clearance, or when a dealership offers special deals for lease returns.
