Why You Should Buy Out Your Leased Car
The end of your lease term is approaching. Will you buy out your vehicle’s lease?
There are many benefits of buying out your car lease instead of purchasing another new or used vehicle. Consider these:
- It’s a Good Deal: The purchase price of the leased vehicle is less than the true market value of the car – you’d pay more for the same at a used car dealership.
- Its Value is One of a Kind: Few used vehicles are comparable in mileage, condition and value. It’s unlikely you’ll find another deal comparable to the purchase of your leased vehicle.
- It’s Familiar: Value is not limited to money – there is value in knowing and liking the car you own.
- It’s a Popular Car: It’s about supply and demand – the value of your coveted vehicle at the beginning of your lease might be lower than the retail value today.
- It’s in Good Condition: Because you initially planned to return the car, you’ve taken good care of it inside and out. The mileage is reasonable and maintenance has been regular. (Or not – see Silver Linings below.)
- It’s a Known: Either way, you know the vehicle’s full history. There are no unknown factors to consider.
Opportunity for Change
- It’s an Opportunity to Get a Competitive Interest Rate: Buying out your car lease is an opportunity to get an interest rate and terms that meet your needs. Shop around for competitive auto loan rates!
- It’s an Opportunity to Get Extra Insurance: Don’t forget reassurance. Even though the car has been in your care, buying your leased car is also an opportunity to purchase extra protection for your vehicle.
- It’s Your Top Choice Already: You’ve already found the car you like! No researching, shopping or test driving required.
- It’s Haggle-free: Generally, the purchase price for your lease buyout (or the residual value), is predetermined. For better or worse, wiggle room is usually minimal.
Silver Lining Benefits
- It’s a Bad Deal: Though rare, if your car’s market value is less than the buyout price, you may be in a position to negotiate the purchase price.
- It’s a Recession: Demand for used vehicles is high in early recession periods, driving up the current market value of similar used cars.
- It’s a Wreck: Because you didn’t own it, you felt free to drive it like a maniac or exceeded mileage limits – now you’re dreading the penalties. Buy it, and skip them.
If you can’t purchase your leased car outright, you will need financing. Many people interested in buying out a car lease will need to take out a loan from a lender to complete the purchase. We can help! If you know your credit score and are ready to move forward, apply now.
Do you have questions before applying? Call 512-735-5839.