If you've become tired of dealing with repair bills and worried about your vehicle's ability to get you from Point A to Point B, you may be considering a lease for your next vehicle. Leasing can ensure hassle-free ownership for the full term of the lease while providing you with a more competitive monthly payment; however, coming up with the lump sum down payment required by many leases can be a challenge for some. Should you try to sell your current vehicle on the private market or hope that it has enough value as a trade in to cover your lease deposit? Read on for some of the factors you'll want to consider when making this decision.
Those who have a few weeks (or months) in which to make this decision may have better luck selling their vehicle on the private market. This can provide plenty of time to have your vehicle detailed, take high-quality pictures, and list it on a number of different sale websites. Being able to take your time and turn down lowball offers while waiting for a fair one can help you get the most value possible from your used vehicle.
On the other hand, those who need a replacement vehicle nearly immediately may not have much luck trying to sell this vehicle to a private party; in these situations, trading in may be the better option.
If you're planning to trade in your vehicle at the same dealership you're getting your lease, you may be able to negotiate the trade-in value so that it's compatible with your leasing budget. This dealership wants your business, so if "overpaying" based on trade in value can help you sign a two- or three-year lease on a vehicle, the dealership usually considers this a win-win.
On the other hand, those who are planning to lease a higher-end vehicle while trading in a basic one may find that there's no way for these two numbers to match. In this case, if the budget doesn't have the room for a higher down payment, selling the current vehicle privately may be the only way to boost the down payment fund.
Popularity (or Availability) of Your Vehicle
Certain vehicles remain in high demand throughout their life, often resulting in a discrepancy between their "book" value and their "street" value. These vehicles are almost always better off sold to a private party; while a dealership will recognize their resale value, it may be tougher to get the full amount your car, truck, or SUV is worth.
More common or widely available vehicles are better candidates for trade in due to their lower private party value. Contact a dealer, like Sammy's Enterprise, for more help.