Buy Leased Vehicle | What to Do When Your Lease is Up
- June 9, 2020
- Car Leasing
- Posted by Ganish KVR
- Comments Off on Buy Leased Vehicle | What to Do When Your Lease is Up
Have you Buy Leased Vehicle or your car leasing going to over? Or you are at the last leasing stages?
If you are beginner or new to leasing, you must be wondering what happens after a lease is over. Right?
This blog will help you get familiar with the options you can do as soon as your car lease ends.
Walk Away from the Lease:
If you are not willing to lease anymore or looking to lease from another dealership, you can walk away after returning the car to the dealer. You will be asked to pay disposition fee, mileage charges or wear and tear charges you owe.
Lease Another One:
This is an ideal choice if you are looking for a new car from the same brand as the previous one driven by you. A few months before your current lease expires, you might opt for what’s called a “lease pull-ahead” offer, an incentive of some sort to allow you to lease another.
For example, you can be offered $1,000 credit toward a new deal if you leased the same model. This amount can be used to make the final lease payment or to put against lease turn-in fees.
If you get such an offer at the cusp of your lease expiration, it might be sufficient to make the last payment as well as pay for any turn-in fees.
Most “pull-aheads” allow you quit the lease and start a new two or three-months early. In fact, you can be given relaxation from extra mileage and wear and tear penalties if you are ready to sign a new lease of the same brand of car.
Sometimes “pull ahead” can be integrated with other benefits. You can get out of your lease earlier than the set time, avoiding penalties, and have some incentive cash to fund your next deal, whether a lease or purchase.
Buy Leased Vehicle. Another thing you can do once your lease is up is to buy the leased vehicle. Instead of returning it to the dealership, you can buy it from them. This is a great option if you have a great experience with your leased vehicle. Your lease agreement will tell you that what cost you would have to pay at the lease’s end to buy the car. Then check what the same car with the similar miles in similar conditions would cost on the open market.
A well-maintained car often has good resale value and will be low on miles. But that doesn’t mean buying a leased vehicle is always a good deal. Auto companies generally support the lease, which can happen by raising the lease-end value—the turn-in or residual value—as a way to minimize your lease payments or making the lease deal more attractive.
Most leases last three years. And a 3-year-old car generally is worth not much more than half its new value. Your 3-year-old vehicle could have valued at just 42 percent or it could lose nearly 50 percent in that period. Luckily, there are tools like Edmunds.com, Kelley Blue Book’s kbb.com, Cars.com, and Truecar.com to find the worth of your old car. Buy Leased Vehicle
If the “value” in the lease paper is less compared to those available on the open market, maybe buying yours is a great deal. If the car is priced more than the market, it is not a good deal.
Sell Your Leased Car:
If your leased car has been maintained and kept in top shape under the allotted miles, you can trade it in anywhere for any make or model you are looking for.
Selling your leased car requires you to buyout the lease, meaning that you have to pay the current purchase price to buy your leased vehicle from your leasing company.
Trading is also useful as it can help you avoid mileage charges, disposition fee and penalties associated with wear and tear.
You can trade in your leased car with any dealer, not just the one where you opted for the lease, and let the dealer buy the vehicle at the trade-in price. The new dealer will pay off the lease as well as pay you the amount based on equity. You can find the average equity of your car by subtracting the residual value from the trade-in value. However, it can be negotiated with the dealer.
However, if your early payoff amount or the sum of remaining payments is not more than the trade-in value of the vehicle than you might get a better equality for a trade-in credit on a new vehicle. For example, if the remaining payments on your leased vehicle is $ 7000, yet the trade-in value of the car is $ 9,500, then you can expect $2,500 in positive equity to be used in your new car.
But don’t trade for a new car in the early stages of your lease contracts. Buy Leased Vehicle
So you must have understood the options what to do when your car lease is up