Thinking of a lease buyout because you enjoy driving it around? In fact, you can purchase your lease either at the end of the contract or before your lease is up. As long as your lease includes a purchase price option when it was signed, you can purchase your leased car at any point in time in a lease term. If you are considering a lease buyout at the moment, read this post for some essential tips for a lease buyout.
Determine The Car’s Actual Value
You need to do some research first to check out what your vehicle is worth in the current market.
Use reliable resources like Kelly Blue Book to determine your car’s value. Make sure you corroborate information like the vehicle’s condition, make and model, and mileage to acquire accurate pricing.
Once you figure out the value of your leased car, compare it with the car’s residual value. The predetermined residual value is the estimated of how much the car will be worth at the end of the lease, which is stated in your lease contract.
You need to compare the car’s actual value with the predetermined residual value to see if the purchase makes sense to you. If the actual value is higher than the residual value, it could be a smart purchase.
Shop Around for Your Finance Options
You have the option of financing your lease buyout, so you do not have to rely on your leasing company. The leasing company will likely want you to finance your lease purchase in order to make extra profit with a markup.
It’s always better to shop around to find the right deal for you. Check to see if you are able to get a better interest rate from other dealerships or financial institutions that offer car lease buyout loans.
Let Your Lessor Make the First Move
Typically most lessors will attempt to call and discuss the end of lease options at about 90 days before the lease is up. You may feel like you can’t wait to contact the leasing company to discuss the lease buyout. But with making the first move, you lose your bargaining power. Just like many other types of transactions, you have the advantages when the seller doesn’t know your level of interest.
Negotiate Your Lease Buyout and Fees
The predetermined residual value and the purchase fees are negotiable, particularly when you make a lease buyout at the end of your lease. You can wait for your lessor to come to you then you will have better chances at negotiating favorable terms.
If you are considering an early lease buyout, you may have little opportunity for haggling to get a better deal. But it never hurts to ask, you will never know what kind of deal you could get if you don’t ask.
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