If you’re like millions of Americans who lease their vehicles, you may be wondering what your options are today for turning in or leasing a vehicle. Today’s automotive market is much different than in years past. And you may have more options than simply returning your ride to the dealership. In fact, one report shows you could earn some serious cash, especially if you have a Ram 1500 lease set to expire.
What the lease market looks like today
With the onset of the pandemic, and shutdown conditions earlier this year, there are many Americans who have leased vehicles to return. Automakers were shuttered, and traditional car buyers locked down in March and April, too. In a way, this created a floodgate effect in the market, allowing for a rush of buying, leasing, and dealership activity, once mitigation restrictions were lifted. This has siphoned tons of available new inventory out of the market.
“There’s an unusually strong demand,” said Jessica Caldwell, the executive director of insights for Edmunds. Because the new vehicles are running short, she described the increased demand for available used inventory, including those three-year-old rides ready to be turned in, off-lease.
What you should know about your lease options
Many people don’t realize there are more options available to them when their vehicle leases are about to expire. You could turn it into the dealership and explore finding a replacement. Or you turn your lease into cash. If you have any equity at all with your leased car, you could have “found money” at your disposal. And considering the high demand for used cars, trucks, and SUVs right now, you could make more than you think. And as Jessica Caldwell puts it, you could instead trade it in or sell it for “a nice chunk of change.”
Ram 1500 has the highest average leases in 2017
Finding extra cash in your lease can be more than you think if you have a Ram 1500 lease. The data suggests more than four million people leased a vehicle in 2017, many of which are about due to expire. And Edmunds statistics show the Ram 1500 brings the highest profit margins, with an average of $4,219. If you’re coming up on a lease return for your Ram 1500 pickup, you could turn it in for the average residual buyout price of $24,073. Or you could tap into the higher, private party value, averaging $28,292.
How to check your equity and get the most for your Ram 1500
Edmunds put together a helpful infographic and offers insights about how to determine what your lease equity values are before you make a decision. You will also want to contact your leasing company to find out what your current buyout price is. Senior manager of insights for Edmunds, Ivan Drury, reminds consumers to carefully consider their situations. “Most people don’t have tens of thousands,” Drury said.
Your financial situation may warrant taking the extra time to find out how much equity you have in your lease and maybe sell it. Others may decide they don’t want to be hassled with a private sale, considering the potential risks of health exposure right now.
How much equity you have built up over the last three years in your current lease can prove to be more lucrative than you think, simply due to the increased market demand right now for used rides. You can use any positive equity toward buying or leasing a new model. And if you have a Ram 1500 lease ready for turn-in, you can expect to be pleasantly surprised with just how much cash you have waiting for you.