What you need to know about trading in a lease

Whether you’re in the middle of your lease or quickly approaching the lease end, trading in could be an option. However, trading in your lease might not be the option especially f your car isn’t in the best condition. Sure it is possible but is it the best deal for you. Read on for more on trading in your leased car.

Can you trade in your leased car – How it works

Depending on the stage of your lease, trading in your lease could be more convenient or in convenient. Trading in a lease might have a lot more out of pocket expenses when compared to when the lease is up.

If your lease pay off amount is much higher than your trade in values, then the trade out process will be more expensive. You will need you current lease pay off amount because the dealership pays off the lease which then goes against the trade in value of your vehicle. Trading in your vehicle is one of the options you have when your lease is over.

Preparing your car for a trade in

car lease trade

There are some things that you must do before taking your leased vehicle to the dealership for the trade. Take a look at how to prepare your car for a trade in.

Gather all your documents

These include your preventative maintenance documents and other records that prove you keep your vehicle in top condition. With all your service records in place, you can easily prove that you’ve taken care of your vehicle.

You might not need to present the repairs paper work as evidence, but providing the documents during the appraisal might put you in a better place than just relying on your word.

TIP: if your vehicle has been in an accident, you must prove the vehicle appraisal expert that repairs were performed.

Clean up

car wash

Before you return your leased car or trade in a vehicle, you want it in top condition. It doesn’t have to be sparkling new, but at least cleaned up. There are penalties that come with wears and tears on a leased vehicle. You may save yourself some extra hundred dollars by checking the vehicle for any scratches, damages or anything of the sort.

Because the dealership appraisal will thoroughly inspect the vehicle, it will do you good to reduce the number of issues that decrease the value. Apart from the vehicle condition, there are a bunch of other factors vehicle appraisers at the dealership look at to determine the value.

Do some research

Before you get the deal of the day from the sales person from the dealership, you must first understand the value of your vehicle. You can easily find out the vehicle trade in values from websites available on the internet. With this value in mind, you can ascertain yourself whether the deal you’re getting for trading in your leased car is in fact a deal.

Know your cars value  

It is important to understand your vehicles market value before walking to a dealership. You can self appraise your vehicle so you can make the best decisions at your trade in. if you decide to use websites to determine the vehicles worth, be honest about your vehicles conditions. This way, these systems generate a more accurate value.  The value will be based on the make, model, features, and condition.

Is it worth it?

Trading in your leased vehicle is best when if the trade In value of your vehicle is higher than the buyout price of your car. This is usually the case when your mileage coverage is lower than what the contract allows, the vehicle is in good condition and the model is still popular.

value of the vehicle

What happens at the dealership?

When you present your leased car at the dealership for trade in, the used car department evaluates your vehicle and assigns the trade in value. This is where your equity is established. It is the positive difference between the vehicles value and what you actually owe. If your vehicle is appraised at negative equity, then you owe more than what the vehicle is worth.

TIP: Having equity is important especially if you plan of getting a car.  you can apply it as part of your down payment for your vehicle, if you’re in the process of purchasing one. You could also take the equity in the form of cash.

Final word

Trading in your leased vehicle could turn expensive or complicated depending on several factors. Before you decide to trade in your vehicle, you must weigh out the pay off, is it going to be more expensive or cheaper based on your trade in value and pay off amount? If you choose to go with the trade in, it advisable that you prepare your vehicle properly.

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