Despite the turmoil that has taken place across the globe, there are still some slivers of hope that stems from the Covid-19 pandemic. Whether it be the united front humanity has put up, or the fact that many are realizing that time spent with loved ones cannot be taken for granted, there are thousands of success stories that have been reported since the virus spread.
One more silver lining to the COVID-19 pandemic that many people haven’t yet caught on to is the embedded value they may have in their leased cars. This is because most people have not driven nearly the miles they paid for when they leased their car. Additionally, with most of the new car manufacturing companies shut for months there is a shortage of cars in the market right now. In some cases, you’ll find that due the low inventory and your low mileage your car is worth more on the open market than the residual value you lease states.
So, how does it work? When you lease a car, the dealer estimates what the car is going to be worth once you have used it for the 3-5-year lease term. This is known as the “residual value”. This residual value is based on the mileage you purchased, plus the traditional depreciation curve for that vehicle.
On hearing this, you might be saying to yourself that you need to sell my used car fast. You may be right, but it’s best to start checking the value of your vehicle one to three months before your lease expires. Next, look at your lease and see what the residual value is. If the car is worth more as you get close to the end of your lease you can notify the lessor you are going to buy the car from them. Once you get the contract to buy your car now work to finalize selling your car. Once you have a deal to sell your car execute the purchase of agreement for your car. Then pay off your lessor and you pocket the difference.
Yes, as long as you pay the lessor what the agreed-upon residual price was of the car you can buy the car and then sell it on the open market. And, if you’re asking, “where can I sell my used car online”, then sale sites such as MyCarAuction may prove to be an invaluable option.MyCarAuction allows you to quickly get an estimate of what the best price for your vehicle is, solving the problem of where to sell my car online fast. This online platform gives you a good estimate of value and then actively offers your car to thousands of bidders. The best part? If it sells for more you get more! And, the whole process is risk-free and costs you nothing unless they hit the price. Even if you change your mind and they do get the price there is no obligation or cost to you.
So, when it comes to clawing back money, you might just be able to leverage the Covid-19 pandemic to your advantage!