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.

Car Leasing Versus Car Buying

So you’re in the market for a new vehicle, but not sure whether you should buy a car or lease a car. It’s difficult to determine which route best suites you financially and individually. Leasing has once again become very popular, with nearly 30% of all new-car sales being sold as car lease deals. This number might actually be higher if more people were familiar with the ins and outs of car leasing.

Several different elements factor into the decision between leasing versus buying a car. To many car shoppers, it seems more appealing to lease. Some of the main reasons to lease are:

  • The extent of a car lease is short, which means you can get in and out of vehicle within two or three years.
  • Monthly lease payments are typically lower than loan payments.
  • If a problem arises with the vehicle, you just bring the car into the dealership for maintenance.

The majority of car shoppers are aware of the buying process, baring certain circumstances. Start by determining which vehicle you’re interested in purchasing and do your homework and research on not only the car, but your financial situation as well. Negotiate with more than one dealer until one offers you a price within your range. Finally, choose whether you’re going to work with a credit union or financing through the dealer or another third party. Some of the main reasons to buy are:

  • At the end of the loan, you fully own the title of the vehicle.
  • There are no caps or restrictions on the amount of miles that can be driven on the vehicle.
  • Once you’ve paid off the loan completely, you can continue driving the car with no monthly payments.

Before going out and leasing or buying a new car, do your research. Know what you can afford and be aware of your financial situation. Do you like to have a different car every few years? Can you make monthly payments for a newly purchased car? Do you drive extended distances every so often? Evaluate your circumstances to determine which option best fits you.

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

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Why Leasing a Car Makes More Sense Than Buying

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