Buying a leased car, also known as a lease buyout, can be a good option if you’ve fallen in love with the car you’ve been driving and want to own it. It can also be a financially sound decision if the car’s residual value (the value it’s expected to be worth at the end of the lease) is lower than its current market value.
Here’s a step-by-step guide to help you navigate the process of buying a leased car:
1. Review your lease agreement.
- This document outlines the buyout process, including any fees associated with purchasing the car at the end of the lease. These fees can vary depending on the leasing company and may include a purchase option fee.
2. Determine the buyout cost.
- The buyout cost is typically the car’s residual value, which is listed in your lease agreement, plus any applicable fees. You can also get an estimate of the car’s current market value using online resources like Kelley Blue Book or Edmunds. If the market value is higher than the residual value, buying out the lease could be a good deal.
3. Decide on financing.
- You may be able to finance the buyout through the leasing company or a bank or credit union. Be sure to shop around for the best interest rates.
4. Inspect the vehicle.
- Before you buy, have the car inspected by a qualified mechanic to identify any potential problems. This will help you avoid unexpected repair costs down the road.
5. Negotiate the price.
- While the residual value is typically set in your lease agreement, there may be some room for negotiation on the purchase option fee or other associated costs.
Here are some additional factors to consider when deciding whether to buy out your leased car:
- The car’s condition: If the car is in good condition, it may be a good candidate for a buyout. However, if the car has excessive wear and tear, you may be responsible for excess wear-and-tear charges.
- Your future plans: If you plan on keeping the car for several years, buying it out may be a good option. However, if you only plan on keeping the car for a short time, you may be better off leasing a new car.
Benefits of buying out a leased car:
- You’ll own the car outright, which means you can sell it, trade it in, or customize it as you please.
- You may avoid mileage restrictions that come with leasing.
Drawbacks of buying out a leased car:
- It can be more expensive than continuing to lease or financing a new car.
- You’ll be responsible for all maintenance and repair costs.
If you’re considering buying out your leased car, we recommend consulting with a financial advisor to discuss your options and determine if it’s the right decision for you. At Certified Auto, We can also help you find financing for your lease buyout. Contact us today to learn more!