Reviewed by Arthur Geller, Auto Lease Concierge · Updated · How our numbers work
How lease equity works
Every lease has a payoff: the amount it takes to buy the car from the bank today. Your payoff drops a little every month you make a payment. If someone will pay more for your car than that payoff, you have equity.
That happens more often than people expect, especially on popular models with low miles, and on cars where used prices held up better than the bank planned when you signed. If the car is worth less than the payoff, you usually just keep making payments and turn it in at the end, and I’ll tell you that honestly.
When switching early makes sense
- You have equity. The extra value can lower what you pay on your next car.
- You’re driving more than your lease allows. Getting out before you pile on extra miles can beat paying overage at turn-in.
- Your lease ends in the next 6 months. This is the easiest window: payoffs are lower, and the programs on your next car are already out.
- Your needs changed. A new baby, a new job with a longer commute, or a move to New Jersey or Delaware.
Some lenders limit who can buy your car
Not every bank lets any dealer buy out its leased cars. Some only allow their own brand’s dealers to do it, and the rules change. Before I get offers, I check your lender’s current rules, so we only shop your car where a buyout is actually allowed. That’s also why one dealer may tell you “we can’t take your lease” while another can.
How the payoff and paperwork get handled
- You send me the year, make, model, miles and your leasing bank.
- I get your payoff and real offers on the car, and show you the payoff, the offer and any equity in writing.
- The trade value stays separate from the price of your next lease, so one can’t be used to hide the other.
- When your new car is delivered, we take the old one back on the same visit, anywhere in PA, NJ and DE. The payoff to your bank is handled for you.
Trade-in, buyout, transfer or turn-in?
- Trade in: best when the car is worth more than the payoff.
- Buy it out and keep it: when you love the car and the price is fair. See should you buy out your lease.
- Transfer the lease: when your lender allows it and someone wants your payments. See lease transfers.
- Turn it in at the end: when there’s no equity and you’re close to your mileage. See lease-end options.
Not sure which one fits? Send me your lease details and I’ll lay out the options side by side.
Want a number first? Check your trade-in value by VIN in about a minute, or see how trade-ins work with Arthur Lease Deals. Call (267) 216-6659 with any questions.