Can You Trade in Your Lease For a New Car?
Wondering if you can trade a leased car into a paid car? Can you use an RV loan to buy a trade-in? The answer is most likely yes, but you still are on your own for any remaining balance on your original loan. If you plan to trade a leased vehicle into a paid car you are still making payments on, then you should still review the entire procedure of trading of a leased car prior to you begin. Not knowing all the facts or misplacing some documents can cause severe headaches and might even cost you money when you really need it. There are also tax implications to be considered.
The first thing you should know is that you must keep all documentation relating to the automobile until the date of your lease is over. This means that you will need to keep repair and appraisal documents for both the trade-in value and the actual value of the automobile. In addition, you will need maintenance records that will prove everything was in good working order before you traded-in the automobile. You will also need to keep the sales price of the automobile.
One thing you need to consider if you can trade a leased car for a lease is what is the actual value of the automobile. While you can get an estimate of the trade-in value from the leasing company or the credit union where you got the automobile, this will not take into consideration any additional damage that might have been done to the automobile prior to the trade-in. In other words, if the entire bodywork is shot or the engine is damaged, can you really assume the trade-in is worth as much as it would be under normal circumstances? It is very possible that the trade-in value is significantly less than the actual value. In this case, you would actually be better off buying the automobile outright and using the down payment money to pay for the vehicle.
When you ask the question, “can you trade in a leased car for a lease,” you are really asking yourself two separate questions. First, can you sell the automobile with a cash sale? In some cases, yes, you can sell a leased automobile with a cash sale. However, the question should be asked, how much is the trade-in worth to you?
Second, is it possible for you to negotiate a lower payment on the financed vehicle if you can gain the trade-in value from leasing? You can discuss this option with your finance team, and they will be happy to help. The finance group represents the lender and their goal is to make the highest amount of money off of each vehicle. For them, any way to get more money from the customer is good. If you have a good relationship with your finance manager and show him that you can offer to make a larger payment, he may be willing to go along with your ideas.
One way you can try to get a better deal when trading a leased car for a new one is to offer to buy the old loan out from under the finance company. This is often an attractive proposal for several reasons. For one thing, they will often give you a nice lump sum and you won’t have to worry about ongoing payments. This will save them money and give you some extra money to play with. If they are willing to agree to this arrangement, you may be able to get a much better price on your vehicle than if you agreed to buy it out.
However, you must be careful when you consider this approach. When you get into the sales part of the buying and selling process, they will have their own terms and conditions. They will look at the current value of your old loan and your new one and determine what your “new” price should be. This will often take into consideration the interest rate that you would be paying on your new loan and will also take into account the mileage that you are driving your vehicle. So, if you are currently making high monthly payments, it may not be the best time to trade a leased car in for a new one. It will be worth it if your new payments are substantially lower.
Of course, there are many different options when it comes to buying a new vehicle. Perhaps the best way for you to find out if you can trade your leased car in for a new one is to contact a dealership or dealer. They will be able to help you with the entire process. You can choose to either trade in your current vehicle or simply buy a new one. No matter what you choose, you will be making some money. In addition, when you finance the car through your bank, you will not have to worry about adding any extra charges to your loan.