Automotive

Can I trade in my other car during a lease buy out

  • Last Updated:
  • Sep 13th, 2022 6:48 pm
Sr. Member
Jan 4, 2004
524 posts
107 upvotes
Surrey

Can I trade in my other car during a lease buy out

Just curious, and wanted to know first hand….

We have a family member in which I might buy out their car at the end of their lease. But I do have a car I’d like to trade in at the same time, ideally I can unload it on the same dealer to save any taxes?

Any thoughts or suggestions? I think if it’s possible, the dealer might try to lowball the trade in a bit…
6 replies
Deal Fanatic
User avatar
May 22, 2009
5162 posts
1253 upvotes
Caledon
Yes, you can trade it in. But it would depend on the dealer, what type of car it is, condition, etc. That it if first you are even allowed to buy out someone else's lease. Most manufacturers don't allow that anymore.
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Sr. Member
Jan 4, 2004
524 posts
107 upvotes
Surrey
afretes wrote: Yes, you can trade it in. But it would depend on the dealer, what type of car it is, condition, etc. That it if first you are even allowed to buy out someone else's lease. Most manufacturers don't allow that anymore.
Really? What about lease transfer. Ie transfer the lease to me a few months prior to it being done. Is there a reason they stopped having lease buyouts?
Member
Apr 27, 2009
430 posts
320 upvotes
West Vancouver
gti303 wrote: Really? What about lease transfer. Ie transfer the lease to me a few months prior to it being done. Is there a reason they stopped having lease buyouts?
Some leasing companies do not allow lease transfers in the last few months of a lease. If they do you will still be looking at fees for both the transfer and then the buyout. The extra fees may be offset by the tax savings.
Deal Fanatic
Oct 26, 2008
7022 posts
2907 upvotes
Victoria, BC
gti303 wrote: ........ I think if it’s possible, the dealer might try to lowball the trade in a bit…
You have it right there.

Dealers take trade-ins at a mutually acceptable price when they are making a decent amount on whatever they are selling you.

In the case of a lease buyout I can't see they have that opportunity, whoever the leasing company is.

Sure, if they see your vehicle as easy to make a quick buck on they might offer you a lowish price and make it look like a trade-in, but depends on what you have and your bottom line.
Deal Addict
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Jul 5, 2011
2526 posts
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Toronto
Yep
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Deal Guru
Sep 1, 2004
12887 posts
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gti303 wrote: Any thoughts or suggestions? I think if it’s possible, the dealer might try to lowball the trade in a bit…
You are NOT in the position of power in negotiation.

Dealer probably doesn't want you to buy out as they can buy it out themselves to make more $. So any part of buy out process where it's not to the letter of the contract, expect them to extract the maximum profit out of your trade in.

It's your incentive to sell your used car privately and then deal with the buyout separately.

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