Don't Leave Car Lease Value On The Table
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The past year has seen a stunning rise in car prices. New and used car prices are up 12% and 41%, respectively, since last February. I’ve had the same conversation with friend after friend lately. They want a new car, but everything is sold out or way above list price.
Meanwhile, about 30% of all cars newer than five years old are leased. Typical car lease terms are about 2-4 years, and car leases likely contains a purchase option that provide the opportunity, but not the obligation, to purchase the car at the end of the lease.
If you are lease a car, are nearing the end of your lease and aren’t interested in keeping the car, carefully research your options. Depending on your car’s model, mileage, and condition, it might be worth substantially more than the purchase option price, by as much as thousands of dollars. According to Edmunds, the average car leased in 2019 with a 2022 expiration is now worth $7,208 more than the purchase option price.
If you’re in this situation, you might want to consider:
Exercising the option and selling the car to the highest bidder. Compare offers from your dealership with an online buyer like Carvana or Vroom, and try to negotiate. Make sure to factor in transfer costs like sales tax.
Selling your lease directly without exercising the option yourself, an option for certain manufacturers. Some internet searches turned up Leasehackr, which has helpful forums where you can post your lease details and ask for advice, as well as a comparison shopping platform to solicit bids for your lease. I have never sold a lease through this site, but it is worth further research. Askcarsales is another great forum where you can explain your situation and get advice from car dealers.
And now…Andrew’s pick(s) of the week:
A great thread of reasons not to trade individual stocks
Also, last year I wrote about my hopes of abolishing changing the clocks twice per year (for daylight savings time) and the bipartisan group of eight senators seeking to eliminate time changes. Last week, my dreams took one step closer to reality as the US Senate unanimously passed the Sunshine Protection Act, perhaps thanks to a bit of trickery. But not everyone is on board.
Afghanistan’s last finance minister, now a D.C. Uber driver, ponders what went wrong
And finally, ‘Baby Shark’ Founder Just Getting Started After 10 Billion YouTube Views
I hope this has been helpful. If you liked it, please share it on social media! Also, please send me your feedback, requests, and success stories.