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Can You Sell A Car That You Lease? Your Ultimate Guide

Can You Sell A Car That You Lease

If you're looking, can you sell a car that you lease, the short answer is yes. You can sell the car to a dealership or do a third-party buyout.

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Leasing a car can be a great idea for those who want to avoid paying more money and owning a vehicle for a long time. It gives you the luxury of enjoying your favorite vehicle without worrying about heavy down payments.

However, with life changes, many things could happen to make people change their minds about leasing their vehicles. In that case, they have to figure out ways of getting rid of the vehicle without dealing with complications or fees.

One of the great ways to do so is to sell your leased car, which might be strange to many people thinking that it's not possible. However, with this article, you'll learn that you can sell your leased car as long as you follow the right recommendations by automotive experts.

Can you sell a car that you lease?

The short answer is yes, you can sell your leased car. When you lease a car, you have multiple options of getting rid of a vehicle and still making some money out of it. Let's take a closer look at some of these options:

1.    Sell your leased car to a third party

One of the greatest options to help you get rid of your vehicle while making some money is selling it to a third-party person. This person could be a family member or a friend, or a stranger you know you don't know.

When planning to sell your car to a third party, you have to follow the right steps to avoid legal complications that might prevent you from selling the leased vehicle.

Therefore, you first want to purchase the vehicle yourself and then sell it to the potential third-party buyer, or you could have the third-party person buy it in a form known as a third-party buyout. This means this buyer will purchase the vehicle from the company leasing the car.

Each approach will have its pros and cons. For example, if you decide to go with the first approach by purchasing the vehicle, you have to have a full payment ready for buying the car. On the other hand, if you're planning to sell this car to a third party person, if you don't know that person very well, there might be challenges convincing this buyer to pay the money for you to buy the car from the leasing company.

On the other hand, if you choose the second option, which is to have the third person buy the vehicle directly from the leasing company, only some people are willing to do so. This is because most private buyers will be looking to purchase vehicles ready for sale without any complications or liens on the car here.

Therefore, the only way for you to have that person purchase the vehicle is to have a good relationship with this person, which means that it should be one of your family members or friends trust you and is willing to do so.

2.    Sell your leased car to the dealership

The second option that might be less hassle is selling your leased car to a dealership. Of course, they can handle all the paperwork and understand what needs to be done for signing the required papers in your state, so everything goes smoothly.

While selling your leased car to a dealership is a very straightforward process and helps you not to worry about all the paperwork and dealing with the DMV, it has a lot of challenges especially related to the amount of money you have to make.

Most automotive experts typically only recommend selling your car to the dealership if they will typically underestimate your car's value, and that's where you won't be able to make a decent amount of money. However, in some instances, people who tried selling their leased cars to the dealerships ended up paying more money to the dealership to buy the car.

Benefits of Selling Your Crashed Car

How would you like to sell a leased car?

Selling a lease car is a great idea, especially with the current car shortage. People are looking for any vehicle that's used for a reasonable price. However, there are a couple of things that you have to consider and keep in mind before moving any step further in selling your leased car.

Let's say it goes to look at some of these things:

1.    Familiarize yourself with the equity of the vehicle

If planning to sell a leased car, you have to understand that the vehicle value involves some details that might not be clear to many inexperienced drivers. In other words, the vehicle's value does not represent the actual used car market value for similar vehicles.

If you open the contract of your list car, you should find an important item referred to as the residual value. This value represents what the company expects as a value for this vehicle if you're planning to purchase it at the end of the term.

Understanding there is a dual value helps you determine what to accept from the third-party buyouts or the dealership buyouts. It also helps you determine whether you're getting a good deal or can end up paying money for this vehicle after selling it.

2.    Understand the current market value

After knowing the vehicle's residual value, you also need to know how this vehicle is doing in the used car market. The car value will be way more than the residual value, so you can make a good amount of money from this car.

The reason for recommending researching the current market is to help you understand how to price your car. You want to make sure that you're selecting a price that's reasonable and encourages people to purchase their car without losing any money at the same time.

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3.    Choose the right asking price

Once you understand a dual value and the current market value, the next step is to determine how much you should price your car for. Again, automotive experts recommend you spend the time doing the math properly to save money and maintain your vehicle's value.

For instance, if the contract indicated that there is a real value of about $12,000 and the current used car market value is about $16,000, then you can choose between the two and list your price for something like $13,000 or $14,000. This way, you're offering the potential buyers a price below the market value but at the same time higher than what you're required to pay for your leasing company.

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4.    Decide on your selling option

Depending on your goals and needs, you will choose one option versus the other from the options we referred to. In other words, go with a third-party buyout if you're looking for the maximum profit from your leased vehicle. On the other hand, if you want to get rid of the car quickly without worrying about any complications in the paperwork, then you can sell it to a dealership.

We encourage you to research and understand which option will be best for you. Sometimes it takes some research to fully understand what needs to be done when selling your leased car so you don't deal with any complications that might get you involved in unnecessary consequences.

5.    Understand the paperwork

If you've never sold a leased car before and decided to sell to a third party person, you want to ensure that you understand the process and the paperwork very well. There are a couple of things that you have to sign based on the contract with the leasing company and your state requirements.

That's why it's important before you even discuss with the potential buyers that you review your state regulations which can be found on your local DMV website. You also need to review the current contract with the leasing company to understand how to sell this car to a third party.

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Final thoughts

This article provided all you need to know to help you answer the question, can you sell a car that you lease? Many people think it's impossible to sell a leased car, but with the tips and recommendations we provided in this article, you should be good to go and make a decent amount of money out of your car.

If you buy the car from the leasing company and want someone to pick it up immediately, Cash Cars Buyer can always help you! We are willing to pay the top dollar for vehicles in your area, and we can pick up your car, my favorite charge, no matter what size or condition.

If you want to take a shortcut and hear more details, call our customer service at 7737914363.

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