These Automakers Won't Let You Sell Your Lease Outside the Brand
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For many people, buying is the obvious way to go. You own the car, and selling it is entirely your decision.
Still others like to lease vehicles, and will often sell it if the car isn’t what they want. Some automakers like Honda, Acura, and GM might be changing up things, however.
Don’t sell that lease
Some automakers are putting new restrictions on how you can sell your lease.
When a lease ends, many people like to sell the vehicle to the highest bidder. In years past, that was fine. Things are different now, however, and Car and Driver reports that Honda, Acura, and GM aren’t allowing leasers to sell to another brand.
In other words, you can absolutely resell your lease. It just has to be returned to the parent brand. For example, if you’ve recently leased an Acura and have decided you want out, you have to return the vehicle to Acura.
This isn’t exactly a new tactic, although these companies have never done so before. Ferrari won’t allow anyone to resell their Ferrari to anyone but Ferrari for the first year, and encourage owners to resell to them after this time period has passed.
Tesla is also very picky about letting anyone lease and don’t even allow leasers the option of buying the vehicle at the end of term. So what has caused more automakers to reclaim their vehicles?
The car shortage is behind this
As with so many other things, you can blame this on the chip shortage, which is in turn caused by Covid-19. Automakers are having a hard time producing vehicles thanks to the chip shortage, which in turn prevents them from making sales.
As a result, used car prices are skyrocketing. In spite of this, those who need a vehicle now don’t have a choice but to pay the extra money. But how do automakers sell these used vehicles when they don’t have them?
That’s where the lease policy comes in. By making leasers return their vehicles to the brand that manufactured it, the automaker is sure that it will have a small flow of used vehicles coming in, which might help make up for the new vehicles it’s unable to produce. This means that companies like Carvana will be feeling the pain soon.
There is a loophole
What happens if you don’t want to return your leased vehicle to the brand dealership? Do you have a choice, or are you truly stuck?
The good news is that there is a way to get around this. The bad news is that it’s a bit of a hassle, and may not be worth the effort.
As frustrating as it may be, you’ll have to buy your way out of the lease. Once you own the car, you can take it wherever you want, and see what type of price you can get. Given the car shortage, you may get a good price, but if you don’t have the funds on hand to buy your way out, then it may not be an option.
If you can hold out until the end of 2021, this lease policy will end. That’s General Motors’ prediction, anyway.
Are you stuck in a lease, and want to sell it? While Jerry can’t help you get out of the lease, we can help advise you on how to deal with the insurance process. Just 45 seconds is all it takes to sign up. We’ll check out over 40 insurance carriers to find you the best rates, as well as helping to determine if you’re getting the insurance you need.