How You Can Save Money By Breaking Your Car Lease When Selling Your Vehicle.
Life is known for taking unexpected turns. Whether you’ve gotten a new job, moved to a new city, or started a family, your everyday needs can change, and you should never have to feel stuck with a vehicle that no longer works for your needs. There are plenty of reasons why you may need a new vehicle or to get rid of your existing one, from no longer having to commute to work to needing less space after your kids go off to college. When you lease a vehicle and you or your family’s needs shift, it might seem daunting to get out of the contract, but we’re here to help you every step of the way.
Leasing companies intentionally make their contracts tedious, hoping that you’ll feel obligated to continue leasing your vehicle, even when it might not be the right car for you anymore. These companies don’t care if something happens to you when you have a lease in your name–they don’t show forgiveness, even in emergencies. But the great news is that there is a way to get out of your vehicle lease AND save money!
If you need to get rid of your current leased vehicle, you can buy the car out from your lease and sell it to a dealer. We Buy All Cars in New Jersey has decades of experience with used vehicles and has bought out thousands of cars from their lease in the last 15 years.
When you buy out a lease, you are freed from the contract entirely and can walk away from the lease and all payments, including insurance. This not only allows you to move forward with investing in the vehicle you need (or investing in something else if you no longer need a vehicle), but you can sometimes come out with a profit after buying out the remainder of your leased vehicle and selling the car.
One of our customers recently came to us with a leased 2017 Lexus RX 350, complete with all the bells and whistles. He had 16 months left on his lease and was making monthly payments of $750. The remaining monthly payments alone added up to $12,000, not including insurance! In total, he owed about $15,000 in lease payments, insurance, and maintenance (such as oil changes, tune-ups, etc.) over the remaining 16 months.
With our help, he was able to buy out the remainder of the lease and sell the car to us at a profit! The estimated residual value of the vehicle according to the lease agreement was $37,265 and we were able to determine the market value at $38,450. Our customer walked away with a check for $1,185 from the equity of the car and no further obligation to the leasing company or the vehicle.
Leases aren’t always a good option. For example, leasing companies will often intentionally overestimate the residual value of a new leased vehicle. This typically results in lower monthly payments and is a tactic that helps them entice people into signing on to a lease, but it can result in zero equity on your vehicle at the end of the lease if the market value ends up being lower than what the contract has stated.
Other sneaky tricks that can find their way into your new car’s lease include hefty fines for early termination of the lease, as well as other fees for signing on, for giving the car back to the dealer at the end of the lease, hidden taxes, mileage limitations, and ambiguity about the cost to purchase the car at the end of the lease period. Leasing a car can be a series of pitfalls, and unless you really want to drive a different new car every few years, purchasing your vehicle instead of leasing it is the best way to go.
If you’re hesitant about breaking your lease because you think it may affect your credit score, think again. When you buy out your lease and sell the car to a dealership, it pays off the balance of the lease and shows up on a credit report as you
We Buy All Cars in New Jersey can help you get out of any lease. We take care of the process from start to finish, including dealing with the contract and all of the paperwork. Our team is here to ensure that you understand your options and that you are able to make the change to a vehicle that fits your lifestyle without any hassle or hidden stipulations. You can get out of a vehicle lease, and it’s often in your best interest to do so. Contact us at 856-834-5558 to get the assistance you need!