How your Lease can Make you Money
We’ve covered all the great reasons to lease a car before, however, today we are going in-depth and discussing lease equity. This idea might sound strange but with some careful negotiations and research, leases are an incredibly savvy financial move.
Understanding Leasing and Equity:
The demand for used cars is at its peak, in response dealers are turning to leaseholders and paying them for the equity of their car. Shrewd consumers are turning in their keys and walking away with a check or reducing the payments on their next contract.
Previously, consumers and dealers alike never considered that a leased car would have any equity, however, major market changes have altered this perception. A lease agreement is fairly simple, the leasing agent will predict the value of the car at the end of the lease, this is the residual value. The residual value dictates the lease contract and is the set amount you can purchase the car for at the end of the contract.
Typically, leasing agents are highly skilled at predicting an accurate residual value. Yet, these predictions are far from infallible and with the fluctuating market, some cars have a greater worth than the residual value. These fluctuations almost always work in favor of the customer. If your lease is worth more than the residual value, you can buy the car at a bargain, if it is worth less, you can walk away with no further expense.
Leverage your car’s value into cash:
Keeping tabs on your car’s popularity during the entirety of your contract is the best way to make the most out of possible lease equity. Often, if the make and model of your car are well-liked, dealerships will be happy to buy you out of your lease and send you along with some money in your pocket.
Turning a car in early is not always permitted with a lease contract, additionally buying and reselling a car is far from easy, and this is when working with an expert will help. TriState Auto Champs can go over the terms of your lease and help you get a clear picture of what your car’s worth. Our experienced professionals can get your car appraised in addition to taking care of the entire turn-in process.
Your car’s equity is the residual value subtracted from the current market price. These prices are always changing and subject to negotiations with the dealer. Trusting TriState to handle the negotiations on your behalf is a surefire way to make the most out of any equity your car may have. Skip the runaround at the dealer and let TriState help you today!