Is selling a lease early when the residual is higher than market value a bad idea?

I’m If I sell my car to a dealer, do I have to pay the remaining 2 months and residual balance? I have a 2016 Volvo S60 T5 Inscription Premier with 2 months left on my lease. I’m 13,000 under my miles limit. Looks like my residual value is $20k and the market value is around $17k.

Also, does gap insurance help if selling to a dealer? Thanks!

Edit: I also have a 2017 Subaru Outback 2.5 Limited with 25k miles. Are these more likely to be bought equal/above payoff?

Get your 10 day dealer payoff by calling the financial company you leased the vehicle from you would be responsible for whatever equity is left

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If you are leasing through VCF,then you can log in and get a payoff. You can get your car appraised or plug vin into a place like vroom and see what they will give you. If you appraise for more than your payoff then great. If not, ground the car at the dealer and vcf will bill you the last two payments and dispo fee if you don’t get another Volvo

Doesn’t matter about gap

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Thank you! Is it worth selling to a different dealer that will pay the highest? Also, if that highest is less than the payoff, is it not worth selling, and instead return (ground) now or at the end of lease?

If your car appraised for more than the payoff. I would sell it to a carmax or vroom.

Since it is a Volvo, I would get your payoff and then do vroom and see what you’re really working with. Usually with Volvo you don’t have equity unless you purchase them at dead dealer cost and then sometimes it’s hit or miss. Or so I have heard :slight_smile:

You need to calculate costs, does it need recon ( tires, curbage, etc) and if you’re not leasing another Volvo then add in dispo fee.

Run it’s course and then assess at end

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There’s no cheap way to get out of a S60 lease early. No one wants that old S60. Ride it out til the end and return it.

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No one will pay you anything close to buy out, trust me. Just ride it out and return. My payoff was around $23k and the car was around 13k under mileage. Volvo offered it to the dealer for 18.7k while he was grounding it in front of me. He still didn’t buy it and it ended up at another dealer a few days later.

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Thank you! First time turning in a lease and wasn’t sure if being under mileage so much would be beneficial.

I also have a 2017 Subaru Outback 2.5 Limited. 25k miles. I’m assuming to do the same thing. Are these more desired and likely to be bought above payoff or same issue as the S60?

Subarus are on the other end. Their RVs are spot on, so you may have some equity on a lease. I got $500 on a Forester from a dealer once, but can easily be more. Get quotes from carvana, vroom, carmax.

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