Car leasing gives you the opportunity to ride your dream car, paying the seller gradually. This service is used by thousands of people in Latvia, but sometimes it comes as a surprise and changes to long-cherished plans. If you have a car leased but want to pay off your debt early, you can sell the vehicle. Yes, that’s right – you can sell not only your own car but also car leasing. Read our latest article and learn how to do it right!
What is car leasing ?
Car leasing is a financial service that allows an individual or a legal entity to become a car owner by making monthly payments. We would like to point out right away that car leasing and car loan are not identical services and the information in this article applies only to the leasing car.
The vehicle registered in the car leasing passes into the ownership of the borrower only after full payment of the leasing amount. It should be noted that the type of operating lease does not imply the full purchase of the machine and remains the property of the creditor. Consequently, leasing car sales are available to borrowers who have opted for financial leasing , a long-term credit solution that gives the borrower greater flexibility.
Why sell a leasing car?
Leasing car sales are usually topical for people who want to pay off their debt as soon as possible. There are several reasons for this:
- as life changes, the need for free funds increases and the borrower can no longer afford monthly car lease installments. In this case, selling the machine allows you to get out of debt early and focus on solving the most important problems;
- When you drive a leasing car for one or two years, the borrower will have a desire to buy another, better and newer car. If a person’s improved solvency allows you to get a larger car lease and make higher monthly payments, but the savings are not so big to pay off the pre-paid leasing on your own, then leasing a car is the perfect solution.
Now let’s talk about how to sell a leasing car according to creditors’ requirements. It is not complicated at all if you know the right scheme of action.
Leasing Car Sale : 4 Steps to Your Goal
To make the sale of your leasing car a success and maximize profit for you and the new owner, follow these steps:
1. Find out your creditor’s terms
No credit institution shall oblige the borrower to repay the amount of the lease by the end of the term. If the borrower finds a person who wants to take over the debt and meets the requirements of the creditor (income level, age, status of Latvian citizen, etc.), the leasing car can be sold. However, there are a few nuances worthy of note to make the deal friendly to all involved:
– a check on the terms of the sale if the leasing amount is repaid in full and if the debt is taken over by a new person who continues to make monthly lease payments;
- find out whether the leasing amount is to be repaid by you or the buyer of the car;
- consult additional commissions for early lease repayment and re-registration of the borrower, if any.
2. Find a new buyer
Little-used cars are in high demand in Latvia because they are much more affordable than new cars, but they are just as durable and meet modern quality standards. Experts point out that the best time to sell your car is the period before the warranty expires, which often coincides with the end of the car lease. The faster the sale of the leasing car, the greater the chances of finding a buyer with adequate solvency and completing the transaction without undue delay.
You can place ads for selling your car on social networks and online ad platforms – the more people read your information, the better!
3. Complete the necessary documents
The name of the new car holder must be registered in the CSDD. The leasing car can be re-registered to both natural and legal persons, and it can also be done online through the e-CSDD platform. A fee of $ 6.46 is charged for this service.
4. Complete the transaction
When selling a leasing car, all settlements must be electronic. Reliable leasing companies avoid cash payments, so warn potential car buyers that the transaction will be processed through online banking.
New car, new leasing
After leasing a car you can apply for a new leasing for another vehicle. Don’t worry that selling a car will negatively affect your credit history – if you have no debt, all leasing payments have been made on time, and the sale of the car has been done in accordance with the lender’s requirements. If you have a stable and high income and a reliable borrower profile, there is no reason why a leasing company would not grant you a new loan.
When looking for a suitable creditor, pay attention to Moho’s offer. Moho is one of the best known non-bank lenders in Latvia, which gained popularity thanks to car leasing offer. The LAndking Emsworth platform has the most important information on Moho leasing terms – come and see if they are right for you!