Your lease is almost up. What are you going to do? Of course, you can turn it in. Sometimes it’s almost as easy as just handing over the keys. But sometimes you may owe money for mileage overages, wear and tear or accidental damage. Did you know that you might have another option? Have you ever considered buying out your lease? Most lease contracts allow you to purchase your leased vehicle for a pre-specified buyout price. Just like buying a used car, you can often finance that amount or simply pay it in full, in cash. But should you? There are several things to consider before making that decision.
What is the condition of your vehicle?
If you’ve taken really good care of it, had all of the scheduled maintenance performed and still love driving it, buying out your lease might be a good idea. Sometimes your vehicle may even still be covered under the original manufacturer’s warranty. If your vehicle is in great condition and well-maintained, buying out your lease means you get a quality one-owner (you) used vehicle with a known history (yours) at a more-than-reasonable price (the pre-negotiated value). If it’s not in the best condition or you’re just sick of driving it, it might be time to turn it in and upgrade to something newer and nicer.
What is the current value of your vehicle?
Check Kelley Blue Book or Edmunds.com to find the current estimated value of your vehicle. If your vehicle is worth more than the buyout price on your lease contract, you’d have instant equity. You’d be getting an amazing deal on a quality one-owner used vehicle. If, however, your vehicle is in poor condition, has exorbitant mileage and/or has depreciated more than its expected value, buying it might not be your best option.
Did you purchase any additional insurance or warranties?
If you did purchase an extended warranty or service contract, it could make a difference. Depending on your contracts, it might make sense to hang on to your vehicle and get your money’s worth on those supplements.
Sometimes, if you’re under mileage or took exceptionally good care of your vehicle, the dealership may be able to give you money toward a new vehicle when you turn in your lease. Many lessees find they can lease the same brand new model for the same monthly payment, or less. Or, potentially, even upgrade to a better version.
Before you decide, check the values of similar used vehicles to see if your buyout price is a good deal or not. Ask yourself if you love your current vehicle or if you’re desperate for a new car. Then, visit the Folsom Auto Mall to browse their inventory, check the value of your vehicle or turn in your lease and trade up to something new.