Should You Buy Out Your Car Lease?

It’s been a good run with your lease. Actually, a great run. You’ve had few problems with the lease. Now, three years later, the lease is up and it’s heavy on memories. Standing at the crossroad, you wonder if you should return it to a dealer or buy out your car lease.

The best way to determine if you’re making the right financial decision is to understand the residual value – the estimated worth of your vehicle at lease-end – and the car’s current value according to the bank.

If your residual value is still higher than the market value, you’ll have more leverage when negotiating a better buy-out price. In this case, you’ll also know the car’s previous history and what maintenance it requires, and you’ll save yourself hours of car shopping.

On the other side of the coin, if the vehicle has low mileage and is in decent condition, it can sometimes be cheaper to purchase rather than return it and attempt to find another vehicle around the same price.

Understanding the verbiage within the lease contract is also essential, because if your three-year lease only allows 36,000 miles, and you clock over it, the charge could be around 25 cents per mile, give or take. If there are dings and obvious wear and tear, you may be charged significantly to turn it back in. But, by buying out your car lease at that time, you can dodge those fees.

However, there’s a hidden downside to buying out that vehicle lease, to turning your leased vehicle into a permanent fixture in the garage: you can’t move on to a different vehicle and experience that excitement of walking outside to a new car. Or that new car smell.

The best deal for the family may also be the cheapest and the more exciting. And that lies in leasing another vehicle.

For more information on buying out your car lease or to learn how you can have a successful car lease trade, contact at 866-SWAPNOW.

Is An Electric Vehicle Lease A Wise Move?

A report released last week from IHS Automotive  – the global information hub of sustainable business and technology – says that supply of electronic vehicles will rise a whopping 67% this year. The demand could follow suit, skyrocketing the vehicle’s popularity.

Never needing to go to a gas station again? Every consumer is absolutely sold on that idea. But with the prices of purchasing electric cars ranging from $30,000-100,000, will this new fad actually be cheaper? Or is this just a marketing ploy, where consumers pay more money upfront than on the back end?

The best way for consumers to see that they’re saving money is through an electric vehicle lease – not a purchase. Here are three specific reasons car shoppers should consider leasing an electric vehicle:

Low monthly payments: The most obvious perk of an electric vehicle lease is that the monthly payment is incredibly low, partly because some states and the Federal Government offer incentives for having an electric car. In the case of the Nissan Leaf, that credit offered ($7,500) offsets the amount that is owed during the lease period, which drives down the monthly payment to $199. The Chevy Volt, starting at $34,995 can be leased at just $299 per month, and after the incentives kick in, consumers can see a monthly payment as low as $255. Other incentives include rebates up to 50%, tax credits worth 10% of the cost of the vehicle, and an exemption from most insurance surcharges.

Technology upgrades: Consumers can also upgrade the technology under the hood more frequently with an electric vehicle lease. Just like the constant updates and upgrades to mobile and computer technologies, electric cars are evolving.  Companies such as IBM are looking for ways to increase the range, reduce charging times, create batteries that weigh less, and increase the levels of energy from a single charge. If the car is purchased, however, the consumer is stuck rolling in the New Year with yesterday’s car.

Low mileage use: Don’t forget that mileage limits on leases become less of a burden, since electric cars are widely used for local commutes only. This syncs nicely with drivers who plan to drive their electric vehicle for local, low-mileage use.

For more information on shopping for an electric vehicle lease or to learn how you can have a successful car lease trade, contact at 866-SWAPNOW.