Can Trade-Ins Offset Auto Leasing Costs?

Most people are familiar with the process of trading in an old car when buying a new one. If the owner has equity in the vehicle, the act can help offset the purchase price, the amount financed and possibly even the monthly payment that will be required. The same general process occurs when car lessees work with reputable leasing companies to find and secure vehicles.

While the dollars and cents of a car lease agreement will vary based on such factors as the vehicle, the term of the agreement and a lessee’s credit history, trade-ins can prove beneficial in the leasing process. A car leasing company will work with prospective lessees to identify and find the vehicle they want to drive. Once the vehicle is identified, a no-haggle price will be provided while the leasing company works to get the prospective lessee the highest value for a trade-in. Proceeds from the trade-in can lower a prospective lessee’s overall financial exposure.

While trade-ins may help bring down monthly expenses over the term of an auto lease, there are other factors that can also come into play to assist in money savings. If keeping payments low is a concern, prospective lessees will want to work with a leasing company to make sure:

• The vehicle selected offers the value desired – A dream vehicle may not always have a dream payment attached. If the lease payment is too high, consider working with the leasing company to select a comparable, but more affordable vehicle.
• The term of the agreement – A longer-term lease agreement will generally result in monthly payments that are lower. Agreeing to lease and drive a new car for an extra year or two, for example, can have a significant impact on the monthly rate.

Keeping auto leasing costs contained to fit comfortably within the budget is often possible. Trade-ins can help with this goal. If a trade-in isn’t available or its offset isn’t enough, be sure to work with the leasing company to review the difference a slightly longer term might make or the impact a less expensive vehicle might have on the monthly price.

a href=http://www.fairlease.org/about-usFairLease is a credit union owned company, FairLease follows a credit union philosophy of serving people, meeting their needs and providing the best product at a reasonable price. In essence, we want "