Sometimes your car leasing agreements become impossible to fulfill and you find yourself in an almost desperate position. You don’t want to violate the car lease deal and gain bad credit or pay the whole price of your leased car. Maybe you suddenly move to another place or lose the ability to drive a vehicle or simply feel more comfortable using a bicycle? Whatever reasons can be out there, the main point here is what to do with the obligations you bear in NY?
Your lease monthly payment is based on the residual value of your vehicle. This is a prediction of the car’s value at the end of the lease. This means you might be able to arrange to sell the car for the higher price, pay off the lease and then pocket the difference. To get this option possible you need to gather some information about the current state of your car.
If you want to know how does leasing a car work with a trade-in, make use of possible equity and get the numbers. You may do it yourself or hand it to our trusted experts who will walk you through all the details and give a complete response to all the questions you might have. We’ll also give you the option to receive an instant offer on your vehicle, which gives you a solid price to have as a point of comparison.
When you signed the contract, there was information about the amount you can buy the car for at the end of the lease. This amount is called the residual value and it shows the cost of your car after the depreciation during the lease term. There might also be a disposition fee for this transaction.
The key to getting a good deal when trading your leased vehicle is to know the true market value of the vehicle. If you want to end your lease early, call the leaseholder and ask for a current buyout price, factoring in the current mileage, options, and condition. Another way to roughly estimate how much a car is worth roughly is to estimate this price by simply adding the total of all the remaining payments to the residual value. Or you can get a nearly instant cash offer from an online car retailer such as Carvana or Vroom.
Subtract the residual value from today’s buyout price or cash offer. This is an estimate of how much equity you have in the car and how much money you could make on the deal.
Use our Calculator for a more detailed estimation. Now when you are armed with numbers and have some information to negotiate, you may consider different options for your trade-in.
This method requires a bit of trust, so it is better to sell your car to a private party as someone you know like a neighbor, friend, or relative. This person should mail a check for the buyout amount to the leasing company. Once you receive the title (the leasing company will only send it to the person leasing the car), sign it to release your interest in the vehicle, and give the title to the buyer. The buyer can then register the car and pay sales tax at that time (better immediately in order to avoid additional costs). Check for more detailed information about the DMV regulations for NY state here.
You can also take your car to any other dealer, not just the one where you arranged the lease, and let the dealer buy the car at the trade-in price. The dealer will pay the leasing company what you owe and give you a check for the equity. However, don’t expect the money immediately in this scenario. The dealership will mail you a check once it gets a clear title, assuring that your car doesn’t have any outstanding parking tickets attached to it. Tip: ask to get the trade-in agreement in writing and state the amount due to you, just in case.
You may use the equity in your current car as the down payment on your new vehicle. Once you know you have equity, you can take your car to your leasing company to begin a new lease or sales contract. It’s important to make sure all the numbers add up. Agree on the exact amount of equity you will receive and look for that amount in the down payment box on the contract. Alternatively, you can also use the equity to pay the fees required to begin a new lease rather than pay that money out of pocket.
We are eager to help you with every step of this process so contact us to offer you the best trade-in option!
#enjoy your freedom with Grand Prix Motors!
Hear about the latest offers first, before everyone else.
Submit your desired Car and we will contact you shortly.