Selling a Leased Car in Indiana

Conditions in the Leasing Agreement: Can I Sell a Leased Car?

The possibility of selling a leased car in Indiana depends on the contract, as well as on the desire of the leaseholder. 

The lessor is not interested in the lessee disposing of the vehicle. Therefore, most contracts contain a ban on the sale until the lease period ends and the car is purchased at its residual value. However, some agreements may include a condition of sale. They also prescribe compensation to the lessor for termination of the contract. If the contract does not contain such a condition, the lease recipient can agree with the owner and make changes to the initial agreement.

Early redemption and subsequent sale

The first and most obvious way to get the right to sell a leased car is to buy it from the leaseholder. The terms of the repurchase are fixed in the contract. It also stipulates a minimum period during which redemptions cannot be made. In addition, the cost of repurchasing a car from leasing is established depending on the validity period. They may also provide for early redemption, but only if the car owner receives compensation because, otherwise, they lose potential income.

Assignment of rights under a contract

If the leasing agreement does not prohibit the assignment of rights and obligations, you may transfer them to another individual or legal entity. Such a transaction may require compensation. That is, the new party to the agreement will pay for the assignment of rights to the original leasing recipient.

However, in practice, lessors prohibit such assignment or allow it only with their consent. This is because car owners want a predictable and solvent counterparty who will make monthly lease payments. The transfer of rights under the leasing contract may also require monetary compensation determined by the agreement of the parties.

Waiting for the Redemption Date

The previous options may not be suitable due to the disagreement of the lessor. In this case, you can wait until you get the right to buy the car. 

However, this option has considerable shortcomings:

• You pay for the car you have long lost interest in using.
• The quality characteristics of the car will worsen - high mileage, wear of spare parts and components, and deterioration of the exterior.

Who Can Buy a Leased Car in Indiana

If you reached an agreement with the leaseholder and are ready to sell the car, you have two options, like with any other vehicle: 

• Private buyers. Selling your leased car to an individual can potentially fetch you the highest price despite the added inconvenience and potential discomfort of dealing with a stranger. You have the flexibility to set a higher price, and there is usually more opportunity for negotiation.
• Regular market participants. Selling your leased car to a reliable dealer, like Indy Auto Man, is a convenient and straightforward way to get rid of the vehicle. We are experienced in handling lease buyouts and can help facilitate the process smoothly. We can also provide you with a trade-in value for the car, which you can use towards purchasing or financing your next vehicle.

What will affect the profit?

• Payments balance. This condition applies if the lessee has not terminated the leasing agreement. This includes the amount of monthly payments left and the redemption needed to transfer ownership upon completion of the lease. In addition, it is necessary to include possible compensation to the lessor.
• Age, mileage, and condition of the vehicle. The car must be in good working condition and not require immediate investments. In addition, the absence of previous transactions on this car will be a plus. The ideal option is when the lease recipient is the only one who operates the car.

Summing up

Selling a leased car in Indiana is possible in the following ways:

• Negotiate with the leaseholder on the sale in exchange for compensation;
• Assign rights and obligations under the leasing agreement to a new leaseholder in exchange for compensation;
• Wait until the end of the leasing term, or buy the car ahead of schedule and sell it.

There are no restrictions regarding subsequent sales — you can sell the car to individuals or dealerships. 

At Indy Auto Man car dealerships, we are always ready to help you. If you have doubts about any legal issues regarding your car buying or selling matter, visit our dealership for professional consultation or fill in the form below.