Should I Sell My Leased Car?

Yes, you can, and the profits you can make doing it are surprisingly high. While it's harder to sell a leased car than it is to take out a loan, the post-COVID used car market is high enough to get you out of the lease and even at a profit.

Understand Your Leased Vehicle's Value

When you lease a car, you may be wondering what its value is. If you decide to end your lease early, you'll want to know what the car is worth so you can get the best deal possible. Your lease agreement should list the car's residual value, which is the estimated value of the car at the end of the lease. This number can help you negotiate a price if you decide to buy the car at the end of the lease. Keep in mind that the residual value is just an estimate. It may change depending on the car's condition and mileage at the end of the lease. If the car is worth more than the residual value, you may be able to sell it for a profit. If it's worth less, you'll need to either buy the car or pay the difference between the residual value and the sale price.

understanding your leased vehicle's value can help you make the best decision for your situation. Whether you want to buy the car or sell it, knowing the value will help you get the most out of your lease. Click here to know more about your vehicle.

Estimate Your Potential Profit

Whether or not selling your leased vehicle is a smart financial decision depends on your unique situation. However, the Detroit Free Press has shared a breakdown of potential profits for common leased vehicle models.

• The average leased Ram 1500 from 2017 has a residual price of $24,073, based on Edmunds data. Today, it could sell for over $28,000 on the open market, representing a potential profit of $4,200.
• The average leased Toyota Prius Prime from 2017 has a residual price of $14,971. Today, it could sell for over $17,800 on the open market, representing a potential profit of $2,800.

To determine if buying out your lease is the right option for you, you'll need to look up your car's current value on the open market and check your lease paperwork to determine your residual price. You then need to consider any remaining loan payments or fees, like a disposition fee. Add up your total purchasing cost and subtract it from the vehicle's current value to see your potential profit.

Decide What Works for You

Once you've done the math, you'll have a clear understanding of whether buying your leased vehicle is worthwhile. Ultimately, it's entirely up to you to decide whether the potential profit, if there is any, is worth the time spent buying and selling the car. Of course, you may also find that you want to purchase the car and keep it if you can buy it for less than its current market value.

With all of these things in mind, remember that there's always more to consider. For instance, while used car market prices are currently up, they may not stay that way. That means, if you plan to sell your leased car, you need to do so quickly rather than sitting on it for a few months or longer.

What matters is that you run the numbers and keep the facts in mind. Acknowledge that your car may not sell quickly or for the price you expect, so make sure the potential profit margin is large enough to justify your time and efforts, and large enough to account for negotiations, repairs, and other expenses in the meantime. You also need to spend time getting the paperwork in order.

How to Sell Your Leased Vehicle

When you enter into a lease agreement for a vehicle, you are essentially agreeing to rent that car for a set period of time. At the end of the lease, you have a few options: you can return the car to the dealership, you can buy the car outright, or can sell the car. If you decide to sell the car, there are a few things you need to keep in mind. The first thing to do is to make sure the car is in good condition. You'll want to clean it up inside and out and make sure there are no major cosmetic or mechanical issues. You'll also want to make sure the car is fully up to date on all its maintenance and repairs.

Once the car is ready to sell, you'll need to find a buyer. You can list the car for sale yourself, or you can use a car-selling service. If you choose to sell the car yourself, be sure to list it at a fair price that reflects its current condition.

If you decide to use a car-selling service, be sure to do your research and compare prices. Some services are more expensive than others, and not all services are equal. Make sure the service you choose has a good reputation and offers a fair price for your car.

When you sell a leased car, there are a few things to keep in mind. Make sure the car is in good condition, find a buyer, and be sure to get a fair price.