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June 2, 2014

Can I Sell My Leased Car?

There may come a time when you don’t think that you can afford your car payment anymore. However, what are your options to get out of that payment? If you lease your vehicle, you may be able to sell it to a dealer much like you would a used car. When you go to trade in the car, you will get an appraisal and the leasing agent will tell you how much you would have to pay to break the lease if they allow you to do so.

You Can’t Sell Freely What You Don’t Own

When you lease a vehicle, you are paying for the right to drive that car for a certain period of time. Just like you don’t own an apartment that you rent, you don’t own a car that you lease. Therefore, you cannot sell it without permission because you will eventually have to return the vehicle to the leasing agent when the lease expires.

Can You Buy a Leased Car?

At the end of your lease, you will have the option to buy the car from the leasing agent. After you buy the car, you can do whatever you want with it. This means that you now have the right to sell the car if you would like to do so. However, you should make sure that you have sufficient equity in the vehicle to break even or make a profit after you pay off any outstanding loan balance still on the car.

How Do You Transfer a Lease?

If you don’t want to make payments on a lease anymore, you can try to find someone who is willing to take over your lease. To do this, all you need to do is find a person to transfer the lease to and get permission from the leasing agent to do so. Once the lease transfer has been approved, you no longer have to make payments. To find someone to take over your lease, you can ask friends or family members if they need a car or go online to websites that match those looking to get out of their lease with those who are looking to take over a short-term lease.

How Can You Sell Your Car to a Dealer?

Just like transferring your lease, you can go online to find a dealer that is willing to purchase your car before your lease is over. This may be advantageous if your car is worth more than the predicted residual value of the vehicle. It is important that you go over your lease contract to make sure that you can sell the vehicle back to a dealer before the lease is up. Additionally, you may have to pay a fee for the right to make this move.

If you are looking to get out of a lease, you may be able to transfer the lease or sell your car to a dealer. Those who think that they may need to make such a move in the future should read their contract carefully to ensure that they have the ability to do so and can do so without paying too much.

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