Have you got a car that you don’t use often? Perhaps it is because you already own another car and you haven’t been able to sell it off to another dealer yet. In such cases, it would be a very bad idea to leave it like that until you are able to finish the deal.

Many car owners consider leasing a car privately when they are faced with such a situation. This is a win-win situation for the lessee as well as the lessor. This ensures that the car doesn’t remain idle for long and at the same time gives the owner a monthly income.

Whom do you lease it to?

Leasing a car privately comes with an inherent risk. There will be many takers for the vehicle especially if it is in good condition.

The problem with too many choices is that you have to pick the best one out of them and this is no mean feat. Ask for proper credentials and recommendations for people who are not known to you. At the end of the day, you need this car back in good condition to sell it off to another buyer or lease it again. Credit history is an important aspect in this regard although as a layman, you may not be able to make heads or tails of it; so, it is best to settle for a recommendation.

What should you value it at?

It should be definitely less than the market price. Research around with a few of your associates to find the latest trending price for a car of the same model and make. You can either quote the same price as most other dealers or reduce your price.

Always be open to negotiations. Prospective clients will come to you only if they feel that they will get a better deal than from the leasing companies.

The agreement

Whether you are leasing a car privately to the best man at your wedding or the guy who sat next to you in class, always have a legal agreement that binds you both in business. This ensures trust between the two parties. State the terms and conditions involved in the lease without ambiguity. Relieve yourself of any liability that the car may incur during the lease period. Make sure that the ultimate ownership is in your name. Monthly rentals should be stated along with the period of lease. Always include a return policy that mentions the “as was, as is” clause wherein the lessee is obliged to return the car in the same condition as they had leased it out.

The car

While leasing a car privately, always remember that there will be a leasing company out there that could give a better deal than you could. Therefore, you might have to sweeten the deal a bit more. You should be able to lease a proper car without much fault. Give the lessee an option of customizing the vehicle as long as the car doesn’t suffer serious irreversible damage. You could also lease it out for a longer period and offer the car for an all out purchase once the lease period is over at a lower price.

Leasing out your car is something that will do both the owner and the car a lot of good. You could also try renting your car for a shorter period to tourists and taxi drivers as a source of income. Either way, it is important that the final agreement is well written and signed by two witnesses.

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