How to Sell an Auto Lease

You can sell your leased vehicle.

You can sell your leased car either privately or to a dealer for a trade-in. You may find this difficult if your lease is new---as with any new car, depreciation is greatest in the first few years of ownership unless a significant amount of money is put down. Leasing is advantageous for this reason---you pay less of a payment than for financing at a low rate and an organized plan to return the vehicle at a particular date in which the bank suffers from inaccurate depreciation methods and market fluctuations. You can expect to pay fees and possible extra money out of pocket for ending your lease.

Instructions

1. Contact the bank you make payments to and get your buy-out amount. At any time, you can purchase your vehicle from the leasing institution. Depending on where you are in your lease, this amount can be high. Usually, this amount includes any payments left for the remainder of your lease along with any fees the bank wants to charge you. The leasing representative also asks for mileage, so have it handy when you call. Write down the buy-out amount; this is what you need to give the bank before the car is sold. Ask the representative when the payment will change, which is usually when your next payment is due---this amount is deducted from the buy-out figure.

2. Decide how much you will sell your vehicle for. Research Internet appraisal guides like the ones listed in the Resources section, below. Use more than one guide, because no two are the same. Check the private sale value, as opposed to the retail or trade-in value. Search through your local newspaper or other local classified advertising to gauge what similar vehicles are selling for in your area. If you owe more than your car is worth, you have to come up with any additional money to pay off the car. Have this money ready before advertising to avoid delays and buyer frustration.

3. Clean your vehicle so that it is presentable, then start advertising. Use a local newspaper, which should have both an online and print option, along with advertising sites; check the Resources section of this page for free ideas. Post fliers in store fronts if you can, and using a window-paint marker, write "For Sale" on your rear or side windows. Include your phone number. Take pictures of your vehicle before writing on the windows to help advertise your car by adding pictures.

4. Go to the bank to pay your lease buy-out with the buyer, once you have one, so that he can receive the lien release or title. If you live in a title holding state, you are unable to give the owner a signed title. Also, the leasing institution is listed on the title if you have it, and a designated person in the bank will sign the title to transfer ownership.

References

• Edmunds: Leasing Tips; Three Tough Leasing Questions Answered

Resources

• Edmunds: Used Car Appraiser
• Kelley Blue Book: Used Cars
• Craigslist