Sell Your Lease for Major Money
Selling their leased car is not something many people consider when their lease term is about to expire. This means that a large percentage of drivers have likely left thousands of dollars on the table without even knowing it— but you don’t have to!
Leasing a car can be a complicated process on its own, so going the extra mile to sell the lease can seem like an absolute headache. CoPilot is here to break down the process and to make sure you get what your car is actually worth.
Why not just return your leased car?
When your lease comes to an end, the obvious thing to do is to drive right up to the dealership, return the vehicle, and be done with the whole thing. However, while this might be the most convenient course of action, it isn’t necessarily the most profitable one.
Sometimes leasing companies don’t accurately predict the market value that your car will have when the period of the lease ends, and when that time rolls around, your car may actually be worth more than the company estimated.
Therefore, it’s smart to do a quick bit of research on your own and find out how much your car is worth. You may discover that buying out the lease and selling the car could put some cash in your pocket.
PROS AND CONS OF BUYING A RENTAL CAR
Thinking of buying a used car? A used rental car may be a good option for you! But before you do, be sure to check out the pros and cons of buying a rental car.
Find out your lease’s equity
Any lease contract you sign will always include the leased vehicle’s residual value at the end of the period, which determines your monthly payment over the period of the lease. This is meant to reflect the depreciation the vehicle will undergo while it’s in your possession. The calculation for this value will differ depending on the leasing company and the metrics they use, and their estimations won’t always be accurate.
As your lease comes closer to an end, use resources like the CoPilot Compare tool to find the current market value of your vehicle. A spike in demand or any other unpredictable market factor may not be priced into the leasing company’s calculations, meaning that your car may be worth more than its residual value by the end of the term.
The difference between the market value and the residual value is called your lease’s equity. This equity gives you an advantage because it means you can buy out the car at the leasing company’s calculated residual value, sell the car at the higher market value, and take the difference as profit.
FIND NEARLY-NEW & OFF-LEASE CARS
If you’re a savvy car shopper, you know that buying a ‘nearly new’ car is the best value for your money. CoPilot Compare is the search engine for nearly-new cars.
Selling to a private party
An excellent way to maximize your profits when you sell your lease is to sell to a private party. Doing the proper research on your vehicle’s current market value is always the ever-important first step in selling your lease, but after this, it’s up to you who you sell it to.
Selling to a private party will likely be more work because you have to find the right buyer and work out the details with them, but it often ends up in a higher sales price overall. Check with your state’s DMV for any relevant regulations here, as they vary by state.
Selling to a dealer
It’s easier to sell your lease to a dealer than to a private party. Have your information ready on the car’s market value so that you know what price to negotiate for. It’s also essential that the car is clean and in good condition, with all of the paperwork in order.
By selling to a dealer, you have the opportunity to save money on the sales tax and avoid the hassle of working those details out with a private party. You can also use the money you just made selling your lease to make a sizable down payment on your next lease if that’s the route you’d like to take.
This option is certainly the most convenient way to handle selling your lease, though not usually the most profitable.
Buying out the lease
You’ve driven your leased vehicle for some time now, so you should have a solid opinion of the car and your experience driving it. If you’d like to own the car outright and keep driving it, you can simply buy out the lease and rest easy knowing you’re getting a great deal that’s below market value.
8 QUESTIONS TO ASK WHEN BUYING A USED CAR
So you’re in the market for a used vehicle? We’ve gone ahead and prepped some essential questions to ask when buying a used car.
Drawbacks to be aware of
Your contract might have some picky stipulations that determine how much you pay at the end of the lease, so keep those in mind. It’s important to read through your contract and ensure that you fully understand what you’re getting into before signing. Some contracts also have clauses that charge you extra money for early termination. If you’re unhappy with your vehicle before the lease is up, look for one of these rules before you terminate the lease.
Always treat your leased vehicle with care in case you decide to return it so you don’t have to pay for any damages. Furthermore, be sure you stay within your contract’s annual mileage limits, or be prepared to pay extra per mile.
Get a curated list of the best used cars near you
The CoPilot car shopping app is the easiest way to buy a car. Tell us what you’re looking for (like a certain trim level) and we’ll search the inventories of every dealership in your area to make you a personalized list of the best car listings in your area.
Only looking for newer models? CoPilot Compare is the search engine for nearly-new cars. You’ll only see cars 5 years or newer with low mileage, making CoPilot Compare the best way to find off-lease, early trade-in, and CPO cars.
The best part? CoPilot is built using the same technology that dealerships use to buy and sell their inventories, so we have more info on each vehicle than competitors. CoPilot doesn’t work with dealerships, so there are no sponsored posts or other shady practices— just the most info on the best cars. Check out our About Us page to learn more about how CoPilot works.
