If your lease has expired and you plan on turning your car or truck into the dealership, be warned: you could be leaving money on the table.
There could be equity in your leased vehicle and there are ways to recover thousands in cash.
Rising used-car values due to tight supply and a big demand for quality used cars have put upward pressure on the residual value of lease returns. While most leasing companies are good at predicting the residual value of an end-of-lease vehicle, higher used car prices may mean your leased car cars is worth more than the residual value.
You have the right to buy the car at the end of the lease term and profit from the difference.
How to recover your leased car’s equity
Once your vehicle is nearing end-of-lease, shop the car around to dealerships such as Victoria Premium Automobiles, as well as the dealership you originally leased it from. Understand that dealers’ offers will vary, so you must look around for the best offer. You will get a baseline price and quickly determine whether there is any residual equity.
As well, keep an eye on resale prices of your specific vehicle model and year. Check Autotrader and local car lots and then compare the resale prices to the residual value in your lease contract.
The spread is the positive (or negative) value your leased car holds. If the value is negative (worth less than the residual amount), turn the car in at the end-of-lease. If the value is positive, you can pay out the residual value at the end of the lease and then sell the vehicle for a profit. Or, you can visit Victoria Premium Autos. Your leased vehicle will be appraised, we will contact the leasing company for a payoff quote, and if there is equity, we will process the transaction, take possession vehicle and you can take the equity in cash or put it towards a replacement vehicle.
Higher used-car values and a huge demand for quality used vehicles have conspired to drive up used-car prices. If you are nearing the end of lease on your car or truck, do not leave money on the table. Contact Victoria premium Automobiles and ensure you recover what is rightfully yours.