How to Trade in a Leased Car
Still got some time left on your lease, but interested in upgrading your ride now? Here at Pat Peck Honda, we can help you out! Below, we go over some of the options you have and how to trade in a leased car.
See how you can get behind the wheel of the new car you want to travel in around Gulfport, Long Beach, and Biloxi.
What to Consider When Trading in a Leased Car
When looking to trade in a leased car, you’ll want to first consider the possibilities and see if it makes the most sense for you to go ahead and trade it in. You’ll want to consider two factors specifically: the residual value of your vehicle and market value of the car.
The residual value is the estimated worth of the vehicle at the end of your lease term based on its future payments and calculated deprecation. Then there is the market value of your vehicle, which is the actual value of your car at that specific time. This is determined by many factors as well. These numbers will be key to deciding if it makes sense to trade-in your car.
Can I Trade in My Lease?
If you have driven less than the allotted mileage of your lease or your specific model is worth a lot on the market, you may be set to trade in your lease. That is because it will have a high market value, which is how you can possibly build equity.
You’ll have equity when the car is worth more than the buyout price, which is based on the residual value. A lot of times, this buyout price is locked in when you sign the contract to your lease. Because of this, you can keep an eye on the market value and if it’s higher than the buyout price, you could be able to go ahead and trade-in your lease early.
End of Lease Options
It may also be more feasible for you to wait until your lease comes to an end before upgrading your ride again. That is because you may have to pay off the remaining payments for your lease before you can trade it in. There might also be other fees you’ll owe based on your lease contract.
You’ll have options available to you if you choose to go the traditional route and trade in your lease once your term comes to an end. You could buy the car you have been leasing at this time or go ahead and start a lease on another new vehicle, whether you want to get the same model or switch to a different vehicle.
Should I Trade-in My Lease?
It will all come down to your personal situation, but with equity built, it might financially work out for you to get behind the wheel of that new car you want to drive around Gulfport, Long Beach, and Biloxi even earlier!
To help you find out what option makes the most sense for you, stop by our finance center here at Pat Peck Honda today. One of our finance experts can see if you are eligible to trade in your lease early or can help you figure out what to do once your lease comes to an end.
