Should You Buy Your Leased Car?
When you get a new car, you have the option to buy or to lease. People who qualify to lease a car like to opt for this option because you are able to get a nicer car than if you were to buy. Plus, you may encounter deals that make leasing a better option like $0 down at the time of signing. However, what should you do when your lease contract is up? There are a few aspects that you should keep in mind when making a decision like that.
What is the Value of the Car?
A lot of people base the value in the car with how they feel about it. The fact that it feels new, drives new, and may even smell new, can lead people to over guesstimating the value of their vehicle. However, you need to actually get a set amount for how much the car is worth. You want to find out the car’s residual price, as well as the market value. The residual price of the car is how much the car would be after the lease is over, while the market price would be how much the car currently is if you were to buy it on the market. These values will give you an indication of whether or not it’s worth purchasing your leased vehicle.
What Else to Consider When Buying Your Leased Car?
Not only should you care about the value of the car, but you also want to be aware of other aspects that can help you make the right decision. Did you go over the number of miles stated in the lease? These mileage penalties can be pretty costly depending on how much you went over. When you buy the car, you don’t have to worry about those penalties because they disappear since that is your vehicle. You also want to consider the option to negotiate. Many people don’t realize that they may be able to negotiate the price of the car down. If the market value of the car is less than the purchase price that is set by the dealership, then you may be able to convince the dealer to reduce the price down. Finally, you also want to consider longevity of the vehicle. Does it make sense to keep the car for longer? You may find yourself falling into repairs if the car isn’t deemed as reliable. These are all pieces you want to consider when deciding whether or not to buy your leased car.
If you are unsure on what to do and your lease end date is approaching, you may be able to extend the lease for a few months. You need to talk to your dealer to see if that is an option you can look into.
You want to break down the numbers to see if it makes sense to buy your leased vehicle. Once you break down the numbers, you also need to take into consideration aspects of the car like the longevity of the vehicle, as well as your ability to negotiate the price down with the dealer. Take your time so that you can make an educated decision that is best for you and your situation.