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‘BMW does have a clause’: Woman says never just turn in your car when the lease is up. Here’s why you should call other dealerships instead

‘I basically drove it for free for 3 years.’

Photo of Braden Bjella

Braden Bjella

woman returning car keys(l) Woman shares why you never turn in your car(c) Person signing lease document(r)

There’s a significant debate in the car community about whether one should lease a car or buy it outright.

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Arguments exist on both sides. Some say that leasing a car allows them to keep up-to-date with modern car technology while protecting them from depreciation. Others contend that it makes more financial sense in the long term to buy a dependable car and keep it in good condition.

One of the benefits of buying a car is keeping the ability to sell it. However, there may be a way to sell a car while leasing it, as TikTok user Aisha Patel (@mindful.living.at.40) reveals in a video with over 2.6 million views.

Why should you call other dealerships when your lease is up?

In her video, Patel explains why one should “never, never turn in your lease at the end of your lease end.”

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According to Patel, when one’s lease is over, a dealership is likely to try to get you to simply hand the vehicle in. Many customers believe this makes sense, as they don’t technically own the vehicle.

“You don’t technically own it, but do you own your house when you pay a mortgage?” Patel asks. “The bank owns it, but do you sell your home and get that equity out [of] your home?”

Instead, Patel advises to begin calling other dealerships “six months before your lease ends.”

When speaking with these dealerships, one can use their buy-out price as a negotiating number.

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For example, Patel says a dealership might offer you a pay-off price of $24,000 for your lease. However, if you search the internet and find that the market price is $30,000, one can sell their leased car to another dealership for the latter price, pocketing the $6,000 difference.

That said, Patel notes that some manufacturers, like BMW, limit to whom a leased car may be sold.

“This is what I do with all my leases,” Patel concludes. “I always shop around and basically see who’s the highest bidder. I go with the highest bidder, they cut me a check for that equity, and I keep it moving.”

Is this true?

As noted by Jamie Johnson for Rocket Money, it is, in fact, possible to sell one’s car during or at the end of their lease.

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Both Patel and Johnson state that there are some stipulations. In general, a leased car can be sold back to the dealership, sold privately, or have its lease transferred to a third party. However, one’s lease contract should be reviewed before any sale to check for a third-party buyout restriction, which may require permission from the leasing company before a sale is completed.

If the terms are unclear, Johnson says that the lessee should contact the leasing company for guidance and, if needed, work with them to obtain approval for the sale.

@mindful.living.at.40 Lease End Equity #fyp #carsales ♬ original sound – Waldo

Commenters share their thoughts

In the comments section, users offered more information that those leasing cars may find valuable.

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“This can work but only if the payoff is less than the value,” explained a commenter. “Just turned in a jeep where the payoff would have been $35k and was only being offered $31k for it.”

“GM leases requires you to return to GM dealer. We turned our truck in 4 months early. First dealer said we are even. Second offered us $700. Third offered us $2500,” recalled another.

“I had a Toyota RAV4 lease and sold it for almost the full original price so basically I drove it for free for 3 years,” stated a third.

The Daily Dot reached out to Patel via email.

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