What To Consider Before Buying Out Your Lease
When deciding whether to buy out your lease, you should consider a number of factors to determine if it’s a sound financial move.
» The value of the car in its current condition.
» The mechanical history of the car.
» Whether you’ll have to pay excess mileage charges.
» Whether you’ll have to pay reconditioning or excess wear-and-tear charges.
» Whether you can line up financing and afford the monthly payments.
Let’s say, for example, the lease buyout price listed in your contract is $14,500, and you would have to pay $1,250 in excess mileage fees and $850 in excess wear-and-tear charges if you return the car to the dealership. But the car is in great mechanical condition and is currently valued at $14,500 just as predicted, even after considering the excess mileage and wear-and-tear. And you love the car and you’d be able to easily finance the buyout with affordable payments.
In this example, it may make sense for you to purchase the car. By doing so, you’d avoid paying $2,100 in fees you’d have to pay by turning in the car.
Let’s take a look at another example, where the lease buyout price is the same at $14,500 but for a different type of car. You followed the lease terms exactly and had no excess mileage charges or excess wear-and-tear. While the car is in excellent condition, its appraised value is only $10,000 in its current condition.
Even if you love the car, taking advantage of a lease buyout in this situation may not be ideal because you could likely buy a similar car in a similar condition for $10,000 elsewhere. If you did complete the buyout, you’d be paying a $4,500 premium to keep your exact car. This situation mentioned above is very rare in today’s market. The shortage of new cars has put a big premium on the value of your used car.
Depending on your situation, a lease buyout could make sense for you. Or you may want to turn it in and lease a new car. Running the numbers with our auto loan calculator could help you decide.
Don’t forget to compare buying a used car to your lease buyout price to see if you can get a better deal on a similar used vehicle elsewhere. While you won’t have the comfort of knowing the vehicle’s past like you would with a lease buyout, you may be able to save some money.
Regardless of your situation, we are here to negotiate for you and give you the best possible rate and a seamless transaction process. We have relationships with every single auto finance company (listed below) and are in your corner throughout the entire bout.
Ally Financial
US Bank
Chase Bank
GM Financial
Chrysler Capital
Nissan Financial
Acura Financial
BMW Financial
Honda Financial
Refinance Your Car Lease Today!
VIP Auto Lease is now offering very attractive refinancing packages for your car lease to lower monthly payments. Now is the time to refinance your car lease. Experts strongly advise consumers to check for equity in their leased vehicle before turning it in this year as demand in the used market continues to drive up values.
Consumers with a lease expiring in 2022 could be leaving thousands of dollars in cash on the table if they don't plan ahead and check on the equity that is possible from refinancing their expiring car lease. According to the car shopping experts at Edmunds, skyrocketing demand in the used car market is driving up trade-in values and therefore putting a large number of consumers in an unprecedented position to take advantage of positive equity.
VIP Auto Lease has the finance connections that you need to make this happen. Unless you've driven an exorbitant number of miles or your vehicle has excessive wear and tear, you're pretty much guaranteed to see an increase in value and make a sizable profit when you refinance your auto lease.
Find out exactly how much your leased vehicle's payoff amount is. Contact VIP Auto Lease today to get this information as well as the best value for your lease. Don’t miss out on this great opportunity to get cash back on your hard earned money.
