Can You Trade In A Leased Car For Another Lease
Yes and no. Depending on where you are at in your lease term, it may not be financially advantageous for you to do so. Working with your dealership, they can act as your liaison with the lease company to calculate what your contract obligations are to see if it makes sense to payout your obligations or roll it into your new lease. The leasing company may not be willing to take on excessive debt and deny the new lease.
The new lease will include all of the fees and penalties from your original lease and add them onto your new lease, so it usually more expensive. So any costs you incur because of excess damage or annual kilometre penalties get added to the new lease, but that also means the cost is spread out over the lease rather than all up front. If you can take that extra financial hit, there are plenty of times when it can make sense.
You can read more about this situation in our guide to getting out of a lease early.
Trade In Isn’t What You Think
Trading in your car during the purchase of a new vehicle can initially seem like the best course of action, especially when looking for a no-nonsense way to get rid of your old motor quickly.
What many people fail to realise however is that they can often get a lot less than what their car is worth, and the trade in value they receive is far from fair. While putting your old car in against the cost of a new one is good for reducing the price, surely it would be more beneficial to get a better price for your old motor elsewhere, and then use that money as a down payment on a new car?
Luckily there is a way to sell your car that is just as simple than trading in your car. Webuyanycar.com!
With webuyanycar.com, you could easily beat the trade in value of your car by selling directly to us, and still benefit from the convenience and simplicity of a trade in.
Have Your Vehicle Appraised
Your goal now is to get an actual offer. We recommend getting an instant offer from Edmunds. All you need to do is enter the details of your vehicle and you’ll get a trade-in offer good for seven days. Use this offer as a baseline for your negotiating, or if you’re comfortable with the offer, you can take it to a participating dealership and skip the remaining steps below.
If you still owe money on the loan, and the vehicle’s appraised value isn’t enough to pay it off, this means you are “upside down” and you’ll have to pay the difference out of pocket. If you’re not prepared to pay the difference on your car loan, trading the vehicle in at a dealership might be a better option. Keep in mind, however, that if you roll that balance into a new loan, you’ll begin a negative equity cycle that is hard to break out of.
Keep in mind that the trade-in price you’re offered at the dealership can vary depending on a number of factors including the car’s condition, the dealer’s current inventory, and the likelihood the car will sell. There may also be special promotions around trade-ins. More about that later.
If you have a Edmunds appraisal, you will already have a reference point to compare the dealer’s offer to. If not, you might want to try to get appraisals from two dealers.
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The Best Way To Sell A Car That Doesnt Run
- Step 1: Receive a quote for your vehicle.
- Step 2: Take time to consider your offer.
- Step 3: Accept your offer within 7 days.
- Step 4: Schedule a time for pick-up & payment!
Haggling for low-ball prices is not something we believe in. We want to earn your business, and we want to give you a fair-market offer for the worth of your vehicle.
Additionally, when you use CarBrain.com, you get up to seven days of your offer being locked in and not subject to any changes in evaluation. You can also upload pictures and/or add more details if you think something isn’t right, and want to provide more context. This could improve your chances of receiving a higher offer.
When you schedule a pick-up, you will receive a call from the tow truck driver within an hour of their arrival. All you have to do is hand over your car keys along with the title of the car. You will receive a check on the spot, for the full amount you agreed to, and the driver will haul away the vehicle.
Once it’s all done, you will receive a bill of sale, as well as confirmation that the ownership has been transferred. And that’s it! Then all you have to do is figure out what you’re going to do with that new check.
How To Get The Most Money For A Trade
The next question people often ask about trading in their used car or truck has to do with getting the most value they can from it. While there isnt a lot that people can do to dramatically increase the trade in value, there are some small but smart things that you can do to help. Here are some basic tips:
- Always perform the recommended manufacturer maintenance when required and have the receipts to prove it
- Regularly wash the exterior and keep the interior of the vehicle clean
- Repair vehicle damage
Useful Tip!
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Get A Tax Break With Your Trade
Theres a tax advantage to trading in your existing car, rather than selling it yourself and then applying the cash as your down payment. In Washington state, tax laws allow the value of your trade-in to be deducted from the total purchase price.
Heres how it could look:
If you own a car worth $5,000 and you sell it in a private party transition and then use the $5,000 as a cash down payment toward a $10,000 car or truck, your tax liability will be around $1,000.
If you trade your $5000 car in on that $10,000 car or truck, you reduce the taxes by the value of your vehicle. In this case, your tax liability would be $500.
Of course, this goes up when youre dealing with higher price vehicles so trading in a $10,000 car against a $20,000 car will save you $1,000. A $15,000 car or truck against a $30,000 vehicle purchase will save you $1,500. This is all on top of the trade-in value.
What To Expect When You Return Your Lease To The Dealer
First, make sure you call and set-up an appointment in advance. Your dealer will have requested that you complete an End-of-Lease Vehicle inspection. This must be completed before you return your vehicle.
At the appointed time, be sure to deliver your vehicle in clean condition to your dealer. Be sure to bring the following items with you:
- All keys to the vehicle
- Owner’s Manual and maintenance records
- Vehicle Inspection Report
- Receipts for completed repairs
To make the most of your lease trade-in, check out the latest deals on our blog and follow on Twitter. And to see the latest selection of new and used vehicles near you, visit TrueCar.com.
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No Need To Pay Off Your Existing Loan In Full
If you still have outstanding payments left on your loan, this will discourage prospective buyers as well. If you still owe on your loan, you wont have the title in hand. The lender holds onto the title as long as there are still payments due. For many buyers, its a red flag, reducing the number of potential buyers which is likely to increase the time it takes to sell.
A dealer, on the other hand, has no problem with working with you to pay down your existing loan. At Legend Auto Sales, well work with you no matter what your current credit situation is and we have years of experience working with buyers at all stages of their loan repayment.
Let The Dealership Handle The Advertising For You
When selling your vehicle privately, youll need to invest in advertising. Even free advertising avenues like Facebook Marketplace or Craigslist involve the time spent crafting the perfect pitch and taking quality photos. Youll find many who respond wont turn out to be purchasers ready to come and see the vehicle. Some will make appointments and never show. Thats all wasted time on your part.
Avoid the extra time and stress trying to find the right buyer for your vehicle by trading it in, and let the dealership advertise it.
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Trading In Your Car Step By Step Guide Tips And Mistakes To Avoid
Its a fact that selling your car privately fetches a better deal than trading it in. But this route may not be the best if you are not ready to do the legwork and find the best buyer yourself. On the other hand, turning the car over to the dealership is a fast and convenient way of financing your next auto.
The only issue is that youll be dealing with a savvy salesperson who is out to extract the most profit possible out of the 2 vehicles. Here we explain how to trade in a car and a few tips for getting the most out of this deal.
How Does Trading In A Financed Car Work
When you trade-in a car that still has an outstanding loan to pay off, there are two scenarios that can play out.
First, if the trade-in value for the car is more than the amount remaining on the loan, the process is easy. The trade-in value pays off the rest of the loan, and you put the remainder towards purchasing the new vehicle as was described above.
However, if the trade-in value is not enough to cover the rest of your loan, you have what is called negative equity or an upside down car loan. This situation is more complicated and deserves its own question and answer.
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How To Trade In A Car
If you decide that trading in your car is your best option, it is important to learn how to get the most money out of the transaction.
1. Know Your Cars ValueDealers always want to pay the least amount possible. For this reason, some attempt to low-ball the consumer with a price thats below the net value of the trade-in.
If you dont know what your car is worth, youre likely to accept any offer. Therefore, do your own research before stepping foot on the dealers lot. Go to Kelley Blue Book online and enter the make, model, year, mileage, and condition of your car to learn the trade-in value. Print a copy of this information and bring it to the dealership.
2. Fix Up the CarAny cosmetic damage to your car can lower its net value and cause a low trade-in value. You dont have to give your car an entirely new paint job, but it doesnt hurt to clean up the interior or exterior a bit before speaking with a dealership. Shampoo the carpets, drive the car through a car wash, purchase touch-up paint to conceal minor scratches, and repair dents. Simple repairs can add significant value to your car and increase the trade-in offer.
3. Shop AroundShopping around does more than get you the best interest rate on your auto loan or the lowest price on your new car it also helps you get the most for your trade-in. Visit multiple dealerships and request an estimate to learn the value of your trade-in. Keep copies of your quotes and use this information as a bargaining chip.
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Advantages Of Trading In A Car
When deciding the best way to get rid of a car, there are several factors to consider. Before attempting to sell the car yourself, understand how a trade-in can help.
1. You Only Deal With the DealerIf you trade in your car, the dealer handles the entire transaction from start to finish. All you need to do is show up, negotiate the deal, and youre one step closer to buying a new car. While there are definitely benefits to selling a car yourself, trading in a car is the better option if you simply dont have the time or desire to market your vehicle.
2. Its Fast and ConvenientPrivate party sales take time and effort: Theres the task of advertising the car, meeting with potential buyers, and transferring ownership. It can take several weeks or even months to find a buyer. On the other hand, when you trade in your car, you can get rid of your old car in a day or two.
3. It Reduces the Price of Your New CarIf you own your car outright, the dealership will apply your trade-in amount to your new vehicle. For example, if you purchase a car for $25,000 and the dealership gives you $6,000 for your trade-in, you only need a loan for $19,000. And because the dealer knocked several thousand dollars off the final price of your automobile, you pay less in sales tax.
Solicit Quotes For Your Trade
Before you get trade-in quotes from dealerships, collect the documents and other items youll need, which may include:
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Vehicle title
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Auto loan payoff and account information
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Current vehicle registration
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Drivers license
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All vehicle keys
To get quotes, call or email dealerships internet departments. Tell them youd like to buy a car there but want a fair price for your trade-in. They may give you a trade-in estimate based on your description of your vehicles condition. Most dealers will only give firm trade-in quotes after a physical inspection of the car.
Call at least two dealerships to make an appointment for a trade-in appraisal with the used-car manager. Consider starting at CarMax, if theres a branch near you, to secure a no-haggle offer thats good for seven days.
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Best Age Of The Car To Trade In
Again, newer is better. Your car will hold more value the more recent its model year. As with mileage figures, there typically isn’t one particular age when a car’s value plummets. It will decline gradually but steadily. But by the time it’s about 5 years old, its residual value has likely dropped significantly.
When it’s between five to seven years past its model year, the decline in its value slows and mostly settles. So if you didn’t trade in during the first five years of ownership, there’s not much reason to rush to do it before the car turns 8. You’ll get about the same amount of money back as long as the mileage doesn’t skyrocket, so consider taking that extra time to build your savings for a down payment on something you really want.
How To Trade In A Financed Car
- Determine how much you owe. Find out how much you still owe on your current car by consulting your lender and asking for the payoff amount.
- Check to see how much your car is worth, using the valuation tool on Autotrader. You can also solicit cash offers from dealers using the Instant Cash Offer tool.
- Select a car. Pick out the new car you want to buy.
- Calculate payment. If you owe more on your current car than it is worth, expect to have that difference added to the loan amount of your new purchase.
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Well Buy Your Car Running Or Not In 24
We offer free towing in just one to two business days and a no-haggle process so that you don’t have to waste any more time. Whether your car was crashed in an accident, it has a seized transmission or a bad engine, we make it easy to take your non-running car and turn it into options for tomorrow.
Selling a non-running car to CarBrain also means you’re getting the benefit of years of industry experience when it comes to getting the best possible deal. Get your guaranteed offer for your non runner now.
