Be aware of the possibility that you may have a much higher car value than your auto lease for three years.

The 2022 average trade-in value for 2019 model-year vehicles is 33% higher ($7,208) than the predetermined residual value — a vehicle’s worth at the end of a lease — according to research from Edmunds.com. It means that you might be able make money off cars you wouldn’t normally give to dealers.

Edmunds’ senior manager of insight, Ivan Drury stated that the values they have calculated are totally different. Leasing is a great business.

Find out more from personal finance:
Annuities could become a default investment in 401(k)s
Nearing retirement? Be sure to manage this big risk
What remote workers need to know about their taxes

An ongoing global shortage of microchips — key components needed for today’s autos to operate — continues to impede manufacturers’ production of new vehicles, which has translated into demand outpacing supply. Russia-Ukraine conflict could be another factor. further disrupt the manufacturing supply chainThese can cause production to be cut more.

According to data from the Bureau of Labor Statistics, prices have increased by 41.2% in the last year, despite the continued demand for used cars. According to the car-shopping app, $41,000 is an average cost for 1-to-3-year-old cars. This price has risen more than half from $27300 in January 2020 (prepandemic). CoPilot.

For luxury cars, the Lexus IS 300 2019 is tops in terms of posting the largest jump between the current trade-in price and its residual value at lease’s beginning. Edmunds estimates that the car fetches $31,521 on average when it is traded in. This 46% increase over its residual value of $21,653, which was previously estimated by Edmunds.

The Ford Mustang is the mainstream vehicle that has seen the greatest success. Its average trade in value of $29,215 is 68% more than its residual value of $17,363.

You may be able to get more from your lease by taking advantage of these unexpectedly higher values.

You might consider purchasing the lease at the end of the term. This will allow you to get the vehicle for a much lower cost than buying it from a dealer.

“If fighting for inventory isn’t your style, don’t bother.” paying over [sticker price]Drury suggested that a buyout is an option for buying a car. The buyout could prove to be much cheaper than purchasing a vehicle new.

If you are interested in seeing if you can capitalize on any equity in the car — either as a trade-in or for cash — start by finding what your vehicle is worth. Edmunds and Carfax.com make it easy to do so. Drury explained that in general, you will get a little more retail value if the vehicle is traded in or sold at a dealership.

The buyout amount should be determined. This is usually the same value as residual value, if the lease ends before that time. (This information can be found in the contract). Although you may be allowed to purchase it early, there might be additional fees. Another option is to buy the lease outright and then sell it on the open marketplace.

You should also check with your finance company if the dealer allows you to trade in the car (a “third-party buyout”).

Some automakers have restricted this practiceYou will be required to take the vehicle to that dealer (i.e. return Honda to Honda dealers).

Drury suggested that you can sell your car to another dealer if it is allowed. You can sell the vehicle to a dealership of your choice, even if you are unable to do a third party buyout.