As the last couple months of your car lease term tick down, it has come to the point to decide to buy your leased car or return it. Whether you decide to buy out your leased car or turn it in at a dealership, there are some benefits of buying your leased car you’d better know before you make your final decision.
Here are the five benefits of buying your leased car:
1. You know your leased car well
You must have perfectly good reasons when you lease your car in the first place. If you’ve been followed the manufacturer’s maintenance schedule and taken good care of it, it should still hold up and in good shape. You know the history of your leased car, and if you like it and enjoy driving it around, a replacement might not be necessary. As you won’t need to take a guess to jump to another vehicle that you are not familiar with. After all, the car is already in your driveway and you have driven it for years. you know the best if it is a car you would like to continue driving.
2. Avoid paying for mileage overage charges or other penalties
Maybe you didn’t take as good care of your leased vehicle as you thought? Or if you have exceeded your mileage limit? Buy your leased car now becomes a better option if you’ve gone over your lease’s mileage limits. The same thing goes for excess wear and tear. Since if you go with a lease buyout, you’ll not be penalized for going over your allowed mileage limit or having a dent in your fender. Those penalties are another factors when you’re deciding whether to buy your lease, as that can save a big balloon fee at the end of the lease by just simply buy your leased car.
3. Your leased car may be worth more than its book value
The leased term you signed at the beginning has a specific residual value for your leased vehicle. This is a predetermined residual value is the estimated of how much the car will be worth at the end of the lease contract. The thing is, depreciation is always one of the biggest factors when it comes to determining a used car’s value. The initial depreciation of a car in the first couple of years usually is a major cut into the car’s value, and you have eaten up the depreciation with the leased in the initial years. That means it’s very likely that your leased vehicle’s current market value has surpassed its predetermined residual value and is worth more than its book value.
On the other hand, as the used car price is surging since 2021, your leased vehicle is very likely worth more than the purchase price (residual) at which the lease company must sell it to you.
4. Buy your leased car and sell it might earn you a profit
An increase in demand in the used vehicle market currently offers a good chance to get out of a lease or even sell your lease and pocket some profit. The microchip shortage caused delays in car production and carmakers are struggling to keep up with the demands. Besides the short supply of new cars, the used car market is also shaping up because of lacking good inventory.
Buy your leased car allows you to sell your leased vehicle for the most money. You can sell it privately or turn it into a third party and pocket a quick profit.
Expect a same-day check and have your leased vehicle picked up without leaving the comfort of your home? The fastest way to sell your leased car into cash is to sell your leased car online at Carnex, it’s fast, safe and the most convenient!
5. Avoid the hassle of shopping for a new car
Shopping for a new car can be exhausting and time consuming. While the new and used car prices are both higher currently, it’s can be much easier if you just stay with your leased car. If you like the car, buy your leased car in the end of the lease contract is generally quicker and easier than shopping around for a new car.
Learn more about the benefits of buying from Carnex. We believe that all clients deserve to know the good and bad of what they’re buying. Because we wanted to know these when we bought cars. That’s why at Carnex.ca, we will proudly display every detail every step of the way. Browse all the best cars, automobile buying tips, auto insurance, young drivers, driving techniques, auto industry trends from Carnex Blog.