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 Swapalease.com at 866-SWAPNOW.