6 Ways to Turning in a Leased Car to a Different Dealership

A leased car offers an excellent way to drive a new vehicle without any long-term commitment, and it also does not burden your affordability. Not only these, but the associated trade-in option also offers some profit potential. In these cases, you can earn some extra cash, drive a more updated car, or get a reduction in your monthly payments. And it does not necessarily require returning the vehicle to the same dealer. In summation, by turning in a leased car to a different dealership, you can get benefits. But how, when, and why? Here, we answer all those questions. Let’s dive in.

Why Turning in a Leased Car to a Different Dealership?

Below are the reasons:

  1. The very common reason is that you may have found a better lease deal elsewhere. The new dealer is offering lower monthly payments, free maintenance, or a higher mileage allowance.
  2. You have been relocated, and you want to use a leased car from a dealer near your current location.
  3. You are dissatisfied with the service or support of the current dealership. And the new dealership’s customer service department is promising enough.
  4. There is a new model on the market, and you are highly motivated to use it. But the current dealer does not have such a car.
  5. The leased car gets damaged, and as per the current dealer’s terms, the amount associated with the penalty is huge. Here, you may find a new dealer who does not charge such a large amount for those damages.

Learn More: Lease Payoff vs Buyout – A Friendly Comparison

How to Turning in a Leased Car to a Different Dealership?

Now you know the associated reasons for turning in a leased car to a different dealership. But how do you do that? Let’s check out the step-by-step process.

Turning in a Leased Car to a Different Dealership

1. Analyze the Existing Lease Agreement

Do a close and careful examination of the existing lease agreement with the current dealership. Check whether the agreement allows you to transfer the car or not. If the agreement strictly states that, earlier or at the end of the lease period, you are legally bound to return the car to the same dealer, then you cannot go to a different dealer.

2. Search for a Suitable New Dealer

We assume that after examining the lease agreement, you have found that you can transfer the leased car to another person or dealer. Now, check the local market and search online and offline for potential dealers. 

At first, make a short list containing every potential dealer’s contact details and call each one to find out their offerings and terms. Now, in the shortlist, add those associated advantages, disadvantages, terms, etc. with respect to each dealer’s name.

3. Finding a Suitable New Dealer

By using the shortlist, do an in-depth comparison in consideration of advantages, disadvantages, terms, etc. And decide on one single dealership. In the process of comparison, you can take the help of a car lawyer or an experienced friend or family member.

4. Visit the New Car Dealer

Go to the office of the new car dealer and consult everything in detail. In this step, it is better to ask the dealer if he or she wants a physical inspection of the vehicle or a third-party report. As per the preference of the new dealer, allow the dealer to do a physical inspection of the leased car or assign a third party to do the inspection.

5. Close Documentation with Current Dealership

Well, this is not always a requirement, as in most cases the respective leasing bank owns the car. You can turn in the leased vehicle to another dealer without notifying the current dealer. Even if the car is owned by the dealer, you do not need to notify him or her if the lease agreement allows a trade-in

However, if the vehicle is fully owned by the dealer, you should inform him or her about the trade-in and close any pending financial or legal matters.

6. Prepare the Car to Return to New Dealership

Clean the interior, remove personal belongings, and ensure that all necessary maintenance has been performed before turning in the car. Check for any damages; if you find some minor issues, it is better to fix them before turning in the vehicle.

Please note that full preparation is essential. Failure to do so may result in additional costs. For instance, if you do not carefully examine inside the car and leave some personal valuables, there is no guarantee that you will get those back after handing over the car.

7. Turn in the Car

In this final step, schedule an appointment with the new dealership to turn in the car. Bring all necessary documentation, including the lease agreement, a note from the existing dealer, the car’s health check report, proof of any maintenance done, etc. 

Expect that the new dealer will do an inspection of the car to ensure that it has been properly maintained and is in good condition. Finally, go for the paperwork to terminate your lease or purchase a new vehicle from the new dealer.

Final Thoughts

So, now you know the benefits and the process of turning in a leased car to a different dealership. By searching carefully, you can find a suitable dealer to trade in your leased car. However, to get a better and more favorable deal, you must communicate clearly and elaborate on your expectations. Also, it is essential that you know what benefits the new dealer is going to receive after taking over your leased car. This will bring you additional earnings.

Frequently Asked Questions