A Must Read for Sellers Looking for a Successful Lease Trade
We have fielded a number of questions asking how a seller should prepare for a successful lease assumption. We think this is a great question and are always happy to hear customers thinking ahead. Over the years, we have witnessed a number of strategies (both good and bad) and have developed a set of recommendations to put you squarely on the right track from the start. We call this the "LeaseTrade.com Formula for Success" and we recommend all sellers follow it to some degree.
Before You Start - Offering a "Fair and Equitable" Lease Assumption
Buyers are looking for an attractive deal so take a moment to walk in their shoes to see how your vehicle offering compares to others on our website. To begin, make sure your lease offering is "fair and equitable".
A fair and equitable lease assumption has three key elements:
1) A competitive monthly lease payment
2) No damage beyond the wear and tear definitions in your lease contract
3) 1,000 miles remaining per month for the duration of your lease contract
If your vehicle offering meets all of the above, we consider this "fair and equitable".
If your vehicle is better than the elements listed above, then you are offering a better than fair deal and are in a great situation for a quick lease assumption. If you negotiated a good deal at the time of vehicle purchase, paid a large down payment at the beginning of the lease, or drove the car very little during your lease, you likely have a better than "fair and equitable" lease assumption offer.
If your vehicle does not meet or exceed the above stipulations, we would define this as less than "fair and equitable". Examples may include remaining miles less than 1000 miles per month, vehicle damage beyond wear and tear, or a higher than average payment. The good news is that you can easily offset this with the use of a seller cash incentive (see Offering a Seller Cash Incentive for how to calculate this). If you are over your miles, add an incentive to bring your vehicle back to being fair (compensate them for the missing mileage). If you have damage, get a repair estimate and offer to pay the amount as part of an incentive or simply get the vehicle repaired. If your payment is higher than the average, offer a larger cash incentive to lower the effective monthly payment for a lease buyer.
During Your Ad Placement
Assuming that your vehicle meets, exceeds, or will be adjusted to fit the "Fair and Equitable" definitions above, you are ready to post your ad on LeaseTrade.com (Click here to place your ad). The ad posting process takes 5-7 minutes and it helps to have your lease contract handy when filling out your vehicle and lease details. We recommend offering a seller cash incentive to entice buyers but the amount is up to you. Our general rule of thumb is to offer an amount equivalent to half a monthly lease payment to start. However, if you have a vehicle that exceeds our "Fair and Equitable" standard, you might consider offering a smaller token amount ($25-$50) which signals that you are willing to work with an interested lease buyer.
Other Items to Consider When Placing Your Ad
Make sure to include vehicle photos on your ad. Photos are a great way to increase the chance for a successful assumption. As the old saying goes, "A picture is worth a thousand words." Also, remember to include your Vehicle VIN number. This can be found on your lease contract and gives buyers access to CARFAX reports to ensure a clean vehicle bill of health.
Give It Time
Be realistic about the timeframes involved in getting your lease transferred. Although we offer a Leases Wanted feature for potential buyers to receive email notifications when a vehicle matching their criteria is posted, it doesn't always provide an immediate match on day one. In fact, the average time for finding a buyer is normally 3-6 weeks. Once your vehicle ad is posted and you have included a full vehicle description with photos, give the ad some time to work for you.
After 3 Weeks
After 3 weeks, if you haven't found a buyer, it is time to assess your situation. The first thing to do is login to your seller account and check the ad performance statistics. Here you will find two helpful statistics. The first is the number of emails transmitted from your ad. Have you received all of the emails? If not, be sure to check your spam filter and quickly follow up. If you cannot find them and need them resent, contact LeaseTrade.com Support. The second is the number of ad views your vehicle has received through our search engine. Have you received over 50 ad views but no emails or calls? Perhaps your vehicle offering is not attractive enough and needs to be adjusted.
At this point, you should raise the seller cash incentive by $100 or more. By increasing your seller cash incentive, you are making your vehicle even more attractive for willing buyers.
Also at this time, you might consider adding (or renewing for Deluxe Ads) a Homepage Featured Ad service to your vehicle ad. This upgrade, which displays your vehicle ad on the LeaseTrade.com homepage, is proven to increase the number of eyeballs to your ad by over 300% during the time your vehicle is posted in the Featured Ad section.
After Another Week: Wash, Rinse, Repeat.....
After another week has passed and you still haven't found a buyer, login to your seller account and raise the seller cash incentive at least another $50. Continue this step each week until you receive a willing buyer that is able to take over your lease. Set a reminder to ensure you complete this action, consistency is the key to success. By following this cycle, you will reach a market price that will match a buyer's interests for a successful assumption.
In Summary
By following the above process, you are sure to increase your odds for a quick and efficient lease assumption from the start. Stay committed and be sure to follow up on leads that you receive via email and/or phone. In addition, this formula is only a suggestion and we have seen many vehicles successfully assumed through our lease trading marketplace that did not meet or exceed all of our suggestions. In the end, it is up to you as a seller to make the best decision for your own unique circumstances. If you haven't found a lease buyer after advertising your lease vehicle for 8 weeks, don't hesitate to contact us for a bit of advice and guidance. With a strong plan from the start, you can put your best foot forward early for getting out of your lease!
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