Now it’s time to trade your car again. Your old car is old and it’s history! You paid off everything and now all you want is a new car and you want a better deal than you had before. So what do you do?
My suggestion is to trade in your car for a lease because that would be a better deal in many cases. But can you trade in a car for a lease?
Glad you asked, that’s a great question.
And in this article, we will cover it all. You will know if you can trade-in your car for a lease, and if you can trade in a leased car for a new lease, and even if you can turn in early a leased car for another lease.
So keep reading and you will know all of that.
Trading in a car with problems
Is your car giving you problems? Well, do you want to know a secret? Do you want to know the secrets of trading in a car with problems?
Well, it’s not a big secret, if you navigate well here on the internet you will easily discover that you can trade-in the old car that is giving you headaches for a lease.
So can you trade in a car for a lease?
Of course, you can… ABSOLUTELY. And you can do that in a way that will not cost you that much in the end. Did you know that? Well, you can… I’m serious! All you need to do is to use the money you will receive from the trade-in of your old car you want to get rid of… but use it for what? You will use it for the down payment of the new leased car.
And in doing that you can reduce the monthly payments of the lease or the initial amount at signing, or if you want you can do both. Yes, I am serious!
Imagine that you have a used car, you know you have one… but let’s imagine that you have a car with no negative equity. That’s important, by the way, in this kind of case. And your car has a value of 10K of trade-in, money that you will use to finance the new leased car. If you are smart you will negotiate the price of the new car down to…let’s say 40K, with a residual of $24,000 after 3 years of your lease payments. So do you know how much you will pay? Over the course of the loan, you will pay $16,000. And of course, plus interest and fees.
And after all of that if you use your trade-in money to the lease deal…the $10,000 of trade-in. Well, do you know what will happen? You will only owe $6,000, plus interest and fees.
Come on that’s a great deal, think about it!
If you are smart you can use leasing to your advantage… if you have a trade-in of a high value you can put it in your contract. But you can’t do this forever, in your next new car you won’t have any equity to put in your down payment.
Trading in a leased car for a new lease
If you want to trade in a leased car for a new lease I can tell you that that usually is not a great idea. But there are exceptions, of course. Sometimes you can have luck.
Let’s say that the value of the trade-in of your car is much higher than the buyout cost of your lease when you are almost at the end of the car loan, you can sell your car and with that money, you can pay the contract, and then you can use that money for the down payment of your new car.
This is how you can do this kind of trade-in…trading in a leased car for a new lease
Turning in a leased car early for another lease
Is it possible?
Of course, but it will cost you more than you expect it. It’s not that smart. Why?
Because you will have to deal with some penalties if you turn in your lease early than you sign in your contract. You will probably need to pay some extra money for not finish your contract to the end. This changes from a leasing company to a leasing company, so you will need to check your contract very well to see how much you are going to pay if you choose to do that.
Ok, but what if you want to buy a new car from the same dealer? Well, in this case, it may be different. Maybe your dealership is offering you some good incentives if you turn in your lease early, and buy or lease another car with them. Well if that’s the can talk to your dealership and see the best options for you.
Maybe in this case turning in a leased car early for another lease in your dealership is not a bad idea.
So is there you have…now you know that you can trade-in your old car for a new leased one. In some cases is a smart move doing that, but in other cases is not that smart! It all depends, you know… you need to negotiate when you need, and you need to see as many options as you can.
Be smart, and search for the best deals.
And if you want to tun in your lease early to buy another car, as you saw, in some cases it’s not a good idea. But if you check with your dealership you can see what’s best for you. Don’t give up on that idea just because you will need to pay some extra money to end the contract. In some cases, you can benefit from that if you check in with your dealership, maybe tell will offer you something if you buy your new car or do a new lease with them.
So now you answer… Can you trade in a car for a lease?