A leased car comes with several competitive advantages, like a lower financial burden, low maintenance costs, the opportunity to drive a new car, etc. Till now, it’s just fine. But what if your financial situation changes or your choice of car changes? Here, a trade-in is one of the most lucrative options. But can you trade-in a leased car after 6 months? The very straightforward answer is “Yes, you can go for a trade-in.” However, there are several factors associated with them. And even if you cannot trade-in the leased one, there are other options available. Here, we detail all of those. Let’s dive in.
Why You Trade-in a Leased Car After 6 Months?
Below are the most likely reasons.
- The most common reason is that you no longer can afford the existing lease’s monthly installment amount.
- You want to drive an updated brand with more technological assistance, functions, and facilities.
- The four-wheeler’s condition is not good.
- Your family has grown, and the existing seating arrangement is not adequate.
- You have relocated, and the city allows only fuel-efficient cars.
How Can You Trade-in a Leased Car After 6 Months?
As we have provided a very short, positive answer to can you trade-in a leased car after 6 months, you may be in need of more information. In this section, we detail the answer.
1. Trade-in at the Same Dealer
Go to the existing leased car dealer’s office and consult with the manager. Ask him or her about your intentions and the reasons for going for a trade-in. Also, gather information about their offerings. After getting an offer, carefully calculate the monetary loss and value gains. Please note that for this trade-in, in most cases, you are going to lose some money. But, by projecting that against the benefits you are going to get from the new one, you will realize that you are not losing a lot or even a little.
2. Transfer the Lease to Another Person
Please note that this approach is applicable only if your lease agreement allows the transfer. However, to transfer your leased car to another person, follow the step-by-step approaches below.
- Read the lease contract carefully to find out if it allows you to transfer the vehicle to another person or not.
- Post on social media, tell friends and tell family members about your offerings.
- After getting contacted by several people, note down the details according to the people’s names. Here, the details are considered trustworthiness, financial capabilities, your relation to the person, how much benefit you are going to receive, etc.
- Carefully evaluate the options and select the best-fit person.
- Take him or her to the lessee.
- Complete the transfer-related paperwork.
- As you are not bound to pay the monthly installment for the existing leased car and have received the down payment, go for leasing a new car as per your choice and requirements.
3. Go for Leased Buyout
In elaboration, you are going to buy the existing leased car, sell the car, and lease a new one. For this, please follow the below-listed steps one by one.
- Evaluate the market price of the existing leased car.
- Make an offer to the respective car dealer (from whom you have taken the lease).
- Upon successful negotiation, pay the full amount or opt for installment payments based on your credit score and the seller’s proposal.
- Now, go ahead and post an advertisement regarding selling the car. You can post using online and offline methods. Also, do not forget to notify friends and family that you are selling your car.
- Receive purchasing offers and evaluate them to find the most profitable one.
- We suggest you go for the full-payment option.
- Collect the cash and lease a new vehicle.
4. Internal Transfer
In this approach, you are letting a close friend (or family member) use your leased car without any change in paperwork.
- In a potential customer search, be restricted among friends and family and inform them you are going to lease another car so anyone who wants can use the existing one.
- Upon finding the interested one (who must be trustworthy), inform him or her about the monthly payment amount and how much of a down payment you have made. Show him or her the agreement paperwork.
- Check the person’s insurance papers. Or include his or her name in your policy.
- Take your cash and go for leasing a new car.
- Please note that the existing car’s monthly payment must be made by you after taking the agreed-upon amount of money from the respective friend or family member.
5. Go for Online Lease Swap Platforms
There are several websites that match people who want to go out on a lease with people who want to take one. You can also use these online platforms. Some must-mentions are Swapalease, Lease Trader, etc. However, this approach is also applicable if your existing leasing policy allows lease transfer.
- Go to the home screen of the site.
- Insert personal and car details and create an account.
- Pay the fees ($56–$100) by using a suitable payment method.
- Now, log in to your account.
- Go to the lsiting editor option.
- Create your ad with car pictures, details, financial information, etc.
- Try to add a third-party vehicle inspection report; it will convince the potential lease-seeker to count on your vehicle by proving its good condition.
- Upon receiving offers from the shoppers, evaluate them critically and select one.
- Complete the necessary paperwork and financial transactions.
- As the money is now in your pocket, go for leasing a new car.
We hope that our in-depth answer on can you trade-in a leased car after 6 months will assist you substantially. Finally, it is important to carefully review your lease agreement and speak with your dealership to fully understand your options and any associated costs. Also, we would like to inform you that trading in the leased car just after 6 months can meet your current needs and preferences, but this may not be beneficial in financial terms. So, we suggest you weigh your options and consider the long-term implications before making a final decision.
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He is a passionate automotive writer with a deep understanding of cars and mechanics. With hands-on experience, John offers a knowledgeable perspective on the automotive repair and tips. Whether you’re a seasoned or regular driver, John’s articles are your go-to resource for all things.