Articles & Tips

Trading in a Car During a Lease

Trading in a Car During a Lease

Being able to trade in a car during the course of a lease is an option that many lessees take advantage of for different reasons. The most popular reason is the benefits of getting a newer vehicle. Although, the leasing company will allow you to trade in your vehicle for a newer one, they do not consider it a trade in. To the leasing company, this is considered an early termination of your previous leasing contract. Therefore, the leasing company will happily accept your trade in, while charging you an early termination fees as well as any other penalties and fees outlined in your contract. In some cases, keeping the leased vehicle can save you more money than trading it in.

Advantages of Leasing a Car.

Aside from the early termination fees, many people benefit from leasing a car rather than buying. Leasing a vehicle is a better option for people who like to drive a newer model car often. Driving a newer car can dramatically lower the amount of out of pocket repair costs as well as save you money on fuel. Another benefit to leasing vs. buying is that upfront costs are often lesser as well as the monthly payments for leased cars.