Benefits of Trading in Your Car for a Lease

Having the car provides you with the necessary life comfort. However, there are hardly any drivers who travel their entire lives in the same vehicle. Indeed, the desire to get a newer and better equipped model is quite natural, and from time to time, we change our drive. All we have to do is choose between financing and leasing, and the list of the arguments for the latter keeps growing.

Suppose you already have a car and you plan to lease a different unit. Can you shorten the way from an old vehicle to a new one? If by this question you mean another one, which sounds like “Can you trade in a car for a lease?”, then we have something to please you. Many leasing companies offer such services and programs today, so knowing the details is very helpful if you plan to drive a brand-new car.

What Are the Benefits of Trading in the Car if You Lease?

Experienced tenants are genuinely happy for those who have their own car, which can become a prospective part of the deal. The benefits of this decision, when you are already on the threshold of a leasing company, are obvious.

• You are economical. The monetary benefit of leasing deals is known a lot, and all this is true, especially if you choose a reliable broker. Even at the stage of discussion you can see what monthly payments you have to make, and no expenses usually follow. You don’t need to think about many things, including depreciation, that often worry full car owners.
• You are flexible. By trading in your car and leasing another, you gain a certain freedom. You can change it at the end of the leasing period, taking a newer model or buying the vehicle if you are stuck to it with all your heart. You will not have to think about selling, finding the best loans, and other issues.
• You are absolutely calm! You drive and pay once a month. And that’s it. You do not worry about sudden breakdowns and unforeseen repair costs; the vehicle is under the warranty. You do not care about the fluctuation of the price of your model and its residual value; you can just take another unit when your lease is terminated. You drive an auto you like and stay absolutely serene. What else can a true motorist dream of?
• You are more reliable for banks. Your successful leasing history improves your credit score! You pay on time, and your chances of getting a good loan in future are bigger, too.

So, the benefits of leasing are obvious, and if you can participate in it through trade-in, it will be a good experience.

How Can You Understand That a Trade-In for Lease is What You Need?

Of course, each coin has two sides, and it would be strange to think of it as an absolute panacea. Perhaps trading in your car for leasing another vehicle is far from being a deal of the century right now. On the other hand, it can be a smart solution. Evaluate the arguments below and determine how they characterize your situation.

• You don’t want to get involved in all the selling. Yes, the driver rejoices when he buys a car and when he sells it, but the second may well seem tiresome to you. However, it’s your right, so leasing will give true relief.
• You have a reasonable budget. Since monthly leasing payments are often lower than loan fees, you save and incur minimum extra expenses.
• You like to change cars often. If you enjoy your vehicle just for a couple of years, and therefore you want a different brand or model, leasing suits you unconditionally. You are constantly driving a new (or relatively new) car and without any fuss!

If these statements apply to you, then you can feel safe to try a trade-in of your vehicle and get a car for a lease. Perhaps you have some more reasons?

Sell My Car or Trade It in – What Is Better?

Leasing has a lot of benefits, but some motorists still find certain drawbacks. Most often they mention lower prices for the trade-in, when it seems that their cars are worth more. Indeed, selling a vehicle privately can bring you more cash. The only question is whether you are willing to spend time on pre-sale preparation, waiting for your ideal customer, endless negotiations, and paperwork.

If you need more money, you can go to all these events and advertise the sale. However, many car owners are already reviewing such decisions, contacting leasing companies. Although, if you are not in a hurry and are ready for a long-term sale, why not?

On the other hand, if the brand and model of your dreams is already in the catalog of the auto broker, and monthly payments are quite affordable, is there any point in delaying leasing? When you want another car and you know exactly what it is, all these hesitations just take precious time. Life is short, after all!

How Do Trade-in and Leasing Work Together?

Earlier, leasing companies rarely offered trade-in. Today, as the shortage of used cars is on, this option has become increasingly common, and many potential tenants are very supportive. The scheme offered by the auto broker may be the following:

• You contact an auto broker, stating your wish to trade in your car for lease.
• Company experts estimate the cost of your vehicle and calculate monthly payments when you lease an exact model. Not all these firms impose strict conditions, so negotiations may be appropriate.
• You confirm your agreement to the deal and receive a contract with all the conditions for signing.
• The lessor takes your car as down payment and provides the new vehicle. You drive out in a new car and your only obligation to pay in time since then!

Some experts warn of another issue. The fact is that trade-in and leasing are actually two different transactions, except for those concluded with a minimum time span. On the one hand, you should get a better price for your car, on the other – get better conditions for your leasing. Of course, you must be smart, but helping a reliable broker will reduce risks.

How to Prepare for Trade-In and Further Leasing?

So, the decision to trade in your car has already been made, and you only have to prepare properly for the deal. Experts give a few tips that will help you to benefit more:

• Estimate the cost of your vehicle. Car owners tend to opt for the Kelly Blue Book, although ads from other drivers come in handy as well. If you have an idea about the price, think again whether leasing or private sale will be more profitable for you. If the first is better, continue.
• Make your car look as classy as possible. The more attractive your vehicle is, the more equity it has. Global refurbishment is optional; however, a clean, well-groomed salon and a neat polished body will add points.
• Collect all the necessary documents. This will save you from the unexpected surprises and throws in search of the requested paper. Registration and title must be at the top of the list. If you have got a loan on your vehicle, you will need the appropriate documents as well. Yes, some auto brokers can work with such units, but transactions are carried out under certain conditions.
• Find a reliable and trusted broker. You must never hassle with this. Study offers, history, and reviews. You can even talk to lessees who applied to a particular firm. Decide on all this when you have no doubt.
• Keep your eyes open! Study the contract carefully, without losing sight of a single item. You might want to make a change and the lessor may offer some concessions, so consider everything.

The transition from full ownership to the status of a lessee can be unusual. However, many drivers are feeling more and more attracted to this scheme, so if you have the opportunity to combine trade-in and leasing, it is worth trying!