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Can I trade in a leased vehicle on a lease extension for another used vehicle?

kdubourgkdubourg Knoxville, TNPosts: 1
edited May 23 in General
I have a 2017 Subaru WRX that I leased in June of 2017. 3 years/36k miles. I had every intention of buying out the car last month, however, banks were not giving out loans due to Coronavirus. (I have great credit, and have never missed a payment). My only option was to do a 6 month lease extension, which I didn’t mind since more equity would be in the car by time I buy it out in November. My fiancé and I have recently decided to start acquiring rental properties to use for passive income so now I need a pickup truck. I want to get rid of my WRX and get a used pickup truck because I now have a need for one. My question is.... can I find a used truck that I like and go to that dealer and trade in my leased vehicle for a used truck? Or do I need to have a loan on the vehicle to trade it in? Regardless of negative equity or not. I’m not worried about negative equity rolling into the next deal, I just want to know if a dealer would buy my “leased” vehicle so I can get a loan on a used truck. I’m not sure how this would work. I would appreciate if someone could explain the best course of action as banks are still not willing to give me an auto loan despite my credit and payment history.

Answers

  • MichaellMichaell ColoradoPosts: 145,877
    kdubourg said:

    I have a 2017 Subaru WRX that I leased in June of 2017. 3 years/36k miles. I had every intention of buying out the car last month, however, banks were not giving out loans due to Coronavirus. (I have great credit, and have never missed a payment). My only option was to do a 6 month lease extension, which I didn’t mind since more equity would be in the car by time I buy it out in November. My fiancé and I have recently decided to start acquiring rental properties to use for passive income so now I need a pickup truck. I want to get rid of my WRX and get a used pickup truck because I now have a need for one. My question is.... can I find a used truck that I like and go to that dealer and trade in my leased vehicle for a used truck? Or do I need to have a loan on the vehicle to trade it in? Regardless of negative equity or not. I’m not worried about negative equity rolling into the next deal, I just want to know if a dealer would buy my “leased” vehicle so I can get a loan on a used truck. I’m not sure how this would work. I would appreciate if someone could explain the best course of action as banks are still not willing to give me an auto loan despite my credit and payment history.

    as banks are still not willing to give me an auto loan despite my credit and payment history.

    If that's the case, won't there be a problem obtaining a loan for the truck?

    Any vehicle can be traded in. What you need is information - how much do you own on the Subaru and what is it worth?

    The second question may be easier to answer than the first. Take the WRX to a CarMax and have them give you a buy offer.

    If you financed the lease through SMF, call them and ask for a buyout number. That should be the number the dealer you trade into will have to pay to obtain the title.

    Did you get a good deal? Be sure to come back and let us know! Post a pic of your new purchase or lease!


    MODERATOR

    2015 Subaru Outback 3.6R / 2014 MINI Countryman S ALL4

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