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Can you Trade In a Leased Vehicle?

Posted by Wilmar, Inc.

trade in a leased vehicle

Leasing a car as opposed to buying provides the benefits of a lower monthly car payment, and the ability to return the car keys and walk away at the end of the lease term. It also eliminates ordinary car concerns, such as repairs and depreciation, etc.

At Wilmar Inc, we make it easier for businesses like home services, security companies, transportation companies and electricians to lease vehicles, as well as offer them with outstanding fleet management services.

When you lease from us, you'll get to enjoy all the benefits of vehicle leasing, which range from lower monthly payments and fixed finance rates to immediate access to state-of-the-art business tools.

lease lowdown

The important question here is – can you trade in a leased vehicle? Well, the answer is yes. However, trading in a leased car is not the same as trading in a car that's purchased or financed with a loan.

Considerations Before you Trade in a Leased Vehicle

  • Penalties

One of the disadvantages of breaking a car lease early attracts hefty termination fees and penalties.

Therefore, you'll need to determine the termination fees and penalties you'll be charged for breaking the lease early. If those charges are too high, trading in your vehicle may not be worth it.

  • Payoff value

It's also important that you call the company that financed the lease and seek to know the buyout price or payoff value of the car. You'll be required to pay this figure before you can trade in your leased car.

  • Trade-in value

The trade in value is one of the important factors to consider when deciding whether to trade in a leased vehicle. To calculate the trade-in value, you should deduct the payoff value from the market value.

If the trade-in value is positive, you might be able to trade in your leased vehicle, but if you have a negative trade-in value, it's unlikely you can trade in the leased car.

Ways to Turn In a Leased Vehicle

After all things are considered and it's determined that conditions are right for you to trade in your car, you should think of ways to turn equity into cash. The following are some ways to turn in a leased vehicle:

Sell your car to a dealer
  • You can sell your leased car to any dealer, not just the one you leased from. The dealer will pay the company that leased your car and give you a check for the equity, which is basically the trade-in price.
  • The dealer will give you the check after it gets a clear title, guaranteeing that your vehicle doesn't have ream of parking tickets attached to it.
Sell your car to a trusted buyer
  • A friend, neighbor, or family member may be interested in buying your leased vehicle. Once you find a trusted buyer, you should have him or her mail a check for the buyout amount to the leasing company.
  • If you're leasing from Wilmar Inc, we will then send you the title, which you should sign to relinquish your interest in the car, and then pass it to the new buyer.
  • After receiving the title, the buyer should register the car and pay sales tax immediately. In case the buyer waits for more than ten days, the state may impose sales tax on both of you. The best way to prevent this is to pay the DMV fees and sales tax at once and then return to finalize the deal with the title in hand.
Trade in Your Lease
  • You can use the equity in your leased vehicle as a cash down payment for a new car.
  • You can take the leased vehicle to any dealer to negotiate a new sales contract.

Be sure to agree on the exact amount of equity you will obtain, and verify that it's the amount stated in the down payment box on the contract.

To find out if you can trade in your lease vehicle, don't hesitate to contact us or call us at 1.800.488.8451 today!

lease lowdown

Topics: Vehicle Leasing


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Wilmar Is Always Working In Your Best Interest: The W.I.Y.B.I Promise

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