Your car at the end of the lease may be worth more than you think – .

Your car at the end of the lease may be worth more than you think – .

Those who lease vehicles with expiring terms may consider handing the keys over to the dealership and leaving, but now car shortages and demand for microchips have seen end-of-lease vehicles worthwhile. much more than one. think.

When the auto industry was writing leases three or four years ago, no one could expect a pandemic to create a shortage of vehicles.

Now, as dealerships scramble to find used cars, leased vehicles are worth a lot more.

Four years ago Christine Denty from Brooklin, Ont. decided to lease a 2018 BMW 440i xDrive Gran Coupé. Denty’s lease recently ended and she was surprised to learn that if she returned the vehicle to her dealership, she would have to pay close to $ 2,000 in rental fees. ‘wear.

“I would pay BMW to take my car, but not only would they get my car, they would turn around and sell it. So they would get two thousand from me and sell the car for some more, ”Denty told CTV News Toronto on Wednesday.

Instead, Denty decided to hire an auto broker to sell the car and she was able to pocket around $ 3,000.

“I will be able to make a profit on my vehicle,” she said.

Viraf Baliwalla is President of Automall Network, a licensed car dealer that helps customers buy and sell cars for a fee.

“Customers hire us to help them buy vehicles as well as sell vehicles,” Baliwalla said.

Baliwalla said drivers whose lease ends at this time should know their vehicle may be worth more than they realize.

“COVID-19 has created this weird situation where there is pent-up demand, so vehicles are worth a lot more today than they were two years ago,” he said.

Baliwalla said that one of his customers had a 2017 Honda CRV AWD LX with 37,900 kilometers. At the end of the lease, there was an end-of-lease buyout price of $ 13,805, but another dealer concerned with finding vehicles for sale agreed to pay $ 18,805 for it.

The client walked away with a profit of $ 5,000.

“The prices have gone up, so now you have the right to buy this vehicle if you want to or if someone else is willing to buy it for a lot more because the market has grown tremendously,” Balliwalla said. .

Leases vary, but Denty said what’s important is that anyone whose lease ends soon know they have options.

“They can profit from their car instead of the dealership to which they return it, who will have every intention of selling it more expensive, because the car is worth more than before,” she said.

The current leased vehicle situation may not be like this for a long time – maybe the next six months, or when dealer inventories return to normal.

Nonetheless, if you have a lease that is ending soon, it may be worth doing the math and exploring your options.


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