Selling Your Vehicle

Sell Your Vehicle Outright

One option is to sell your vehicle outright. You may opt to do this if you want to walk away from your lease without going through the transfer process. To sell your vehicle outright, you must first buy your vehicle from the leasing company to assume full ownership. This requires making all the remaining payments as stated in your lease contract.

Here is an example of what your buyout would look like on a typical car with 12 months remaining:

  • Monthly Payment: $500 per month
  • Amount of Payment that is Principal: $300
  • Amount of Payment that is Interest: $200
  • Number of Months Remaining: 12

Now take the number of months remaining (12) multiplied by the amount of interest that is being paid per month ($200) to see how much money you would have to pay above the cost of your car.

In some cases the present value of your vehicle may not be high enough to make a purchase option viable for you. This depends on what the market will pay for the sale of your car. You can research sale prices on vehicles at Web sites like Edmunds.com.

By nature, a lease is not designed to be worth more than the market value of the vehicle at any point in time. Therefore, it may be difficult to sell your car outright without incurring a loss due to the difference in what you sell the car for and what you owe your leasing company.

If you wish to sell your vehicle outright, a good place to start is to call your leasing company and request the “buyout amount” of your lease. This is the total price that will be assessed by your bank to purchase your vehicle at that moment in time. Be sure that you get the most updated amount at the time of sale as this amount will change month to month (as you make more payments, it should go down).

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