Why You Should Trade-In Your Leased Vehicle

Are you tired of leasing a vehicle and not owning one? 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!

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.

1. 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. 
2. 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.