Leasing a vehicle takes several months during which you might move or relocate while still bound to the leasing contract. If you are faced with such a situation, then it is only natural to think about how things will work out when you want to return your leased vehicle or turn it in at lease end.
Here are some tips on returning your vehicle even after moving or relocating to a different state so you don’t worry about driving about driving across the state or across the country at lease end.
Trading in your leased car early to buy another car from a different dealer
Returning a leased car early is not as simple as you’d think. Walking away from a lease is usually an expensive affair that may have major financial implications. There are some ways you can terminate you lease quickly without having to empty out your bank accounts. Trading in your vehicle is a good option even if you do so at ad different dealership.
What happens when you trade in a leased car?
When your lease comes to an end, you have the option of returning the car of purchasing it. However, you might not be willing to stick it out that long and want out of your new lease for a different car, in a different car dealership even. Yes, it is possible to make this transition but it will cost you in fees and penalties.
First off, you must consider the implications that come with terminating your lease early. Depending on the dealer and your lease agreement, you will encounter some penalties. However, there are some ways you can get around these penalties and still get out of your lease early.
Some include transferring the lease, buying and the then selling the car and other ways that will remove you from your current lease without paying as much as you would if you would in early lease termination fees. In as much as these means decrease the amount you are to pay, the two have some fees attached to them.
How to trade in car to another dealer
While returning a leased car to a different dealer is possible, there are some requirements that must be met. First off, the dealership has to be authorized for the vehicle manufacturer.
Obviously you can’t just turn in your vehicle brand to any dealership, however, any dealership. Secondly, all your contract obligations must be met before you attempt to trade in a lease at any dealership.
Turning in leased car early
Turning in a leased car early might get complicated and expensive if not done correctly. First off, you have to remember that the dealership makes money on a lease when the payments are completed. AGAIN: You will have to face some penalty fees for an early lease termination.
You may also have to pay the remaining amount for your lease payments upon trade in. Do not be off put by the penalties you might have to face. In fact many companies offer incentives for an early lease turn in if you are planning to purchase or lease again from that dealership.
Can I return leased car in different state
Similarly to returning a leased car to different dealer, there are requirements that must be met when returning your leased car in a different state. Obviously, you will have to find a dealership approved for the vehicle manufacturer and you must meet your lease requirements.
You will have to contact your lease company to inform them that you intent to return the vehicle I different location. Then you must call the dealership where you intend return the vehicle and make sure they are complaint with the conditions.
TIP: If you can’t a dealership authorized by the vehicles manufacture, you may ask the lease company to direct you to an authorized dealerships.
Why equity is important
At the end of your lease, you could have equity or you could have negative equity. Lease equity is important as it can be put in as payment for another lease or another car. Negative equity occurs when you the value of the car is less than the amount you owe.
This usually comes about when you maintain your vehicle in poor conditions or go past some conditions of your lease. Exceeding the miles coverage, wear and tear or damage will greatly decreases the value of your vehicle and thus lead to negative equity.
TIP: ask the dealer directly for your equity status. Some dealers may not inform you that you have equity when you turn in your vehicle.
Turning in your leased vehicle may be difficult if you’re not sure what to do. These points should help guide you through the process even if you moved far away from the dealership or state in which you obtain your lease.