Sure! 🚗💼
Advice for a car coming off lease:
1️⃣ Do your research: Before heading to the dealership, make sure you understand the market value for your car model and its mileage. This will help you negotiate from a position of knowledge and ensure you’re not getting ripped off.
2️⃣ Negotiation tactics: When discussing your options with the dealership, be prepared to negotiate the purchase price. Aim to get the best possible deal considering the car’s residual value, mileage, and condition. 💵💪
3️⃣ Vehicle inspection: Prior to returning the car, inspect it thoroughly for any additional wear and tear that may have occurred during your lease period. This will allow you to address any concerns in advance, ensuring a smoother process. 🔍✅
4️⃣ Consider purchase vs. lease extension: Evaluate whether it makes financial sense to purchase the car outright at the residual value or extend the lease if that’s an option. Compare the cost of ownership and the benefits of having a newer model. 🤔💰
5️⃣ Explore financing options: If you decide to purchase the car, research different financing options available to you. Compare interest rates, loan terms, and monthly payments to find the best fit for your budget. 💸🏦
Remember, knowledge is power! By understanding the value of your car, negotiating effectively, and exploring all your options, you can ensure a smoother transition at the end of your lease. Good luck! 🍀🚙
Find your contract. You have a contractually agreed upon “purchase price” for the car.
If you like the car and the price. Buy it. You should only need to pay tax and the title/tag transfer.
If you want to trade it in, submit the car details to carmax and they’ll make you an offer. If you have positive equity in the car, use it towards purchasing a different car. DON’T let them use negative equity against you. You aren’t responsible for that. Typically, you’ll have a disposition fee, and thats it.
If that’s a good price for the car then buy it.
If it’s not a good price and you want to buy or at least something else trade the vehicle in, don’t do a lease return. If you trade the car in it’s just trading it in for market value of the vehicle.
If you do a lease return they’re going to go with a fine comb through every detail of the vehicle to try to hit you for wear and tear.
I always like to go 6 months earlier to trade it in, depending on the vehicle you’ll actually get money back. I traded in my Lexus a year early and it had $10,000 equity that I used towards the vehicle that was purchasing.
I ended up buying out my lease. The paperwork when I signed had a residual value listed, and I just used the same financing that was listed in the paperwork. I applied online and had 2 phone calls with a rep, and then it was all done.
There’s a good chance that the buyout price is lower than market value due to car prices skyrocketing over the last few years. If so, buy it!
Type the VIN in on Carvana and see what they’ll offer
If you are in FL or CA, factor in that getting new insurance right now can be difficult and possibly more expensive. Buying your lease, if you like it, could prevent this hassle so you might check this out.
If you are not ready to make decision, ask the lease representative (not the dealer!) to extend your lease by several months. They will adjust the buyout price accordingly.
I just bought my lease out. If you leased in 2021 you probably are in really good shape and your best move is to purchase the vehicle. I wouldn’t go to the dealership though. Go to a credit union and get a good rate on financing it. The dealership will find a way to charge you extra.