Planning a Car Lease Buyout in Hagersville? Consider this

Planning a Car Lease Buyout in Hagersville? Consider this

Posted on July 19, 2021

It’s quite common to buy your old lease car. We tend to form attachments to our vehicles and can be reluctant to see them go. Leasing companies are often very willing to part with lease cars too, but that doesn’t mean you have to buy it, or even should buy it. We asked our Hagersville auto loans team to outline what they think is important to think about if you’re planning a car lease buyout

Planning a Car Lease Buyout

If the price is right and you’re in a position to buy the car, buying your old lease can be a good idea. You know the car, you know it’s history, you know how it has been driven and looked after.

There are three things you need to think about before you agree though.

1.   The lease buyout price

The most important consideration is the asking price for the car. You will have been provided a residual value at the beginning of the lease and the end price should be that price or close to that price.

That residual value is just an estimate that is perhaps 2-3 years out of date so don’t be afraid to check car marketplaces, dealerships and other sources to see the actual current value of that make, model and trim.

If the lease buyout price is close to market value, it could be a good deal. If it’s less than current market value, it is a good deal and if it’s higher, not such a good deal.

Don’t be afraid to counter offer if the lease buyout price is too high. The worst the company can do is say no and then your decision is made.

2.   The car’s condition

Aside from the price, the car’s condition is also something to take into consideration if you’re thinking of buying it.

As you have been driving it for the past 2-3 years, you know it’s condition. You know the type of driving it has done, how it has been driven, any faults it has, recalls it has completed and how many services it has had.

The car’s condition has two sides.

The condition of the car in terms of its lease buyout value and potential value to you as the new owner.

The condition of the car in terms of any end of lease fees you may face if you don’t buy the car. That will include mileage, damage and so on.

Whether you want to own the car or not

It may seem obvious but we see many former leasees get tied up buying their old lease car when they didn’t actually want to own a car in the first place.

Emotion gets in the way, the desire to grab a bargain and keep what’s familiar can all be powerful driving forces in decision making.

You were originally leasing a car for a reason. Is that reason still valid? Do you still want to drive new cars every couple of years? Can you afford to pay for the new car?

Only you can answer those questions but we can help you finance the car if you do want to buy it.

When you’re ready for a car lease or loan, get in touch with the Hagersville auto loan experts at Northway Ford for great deals on auto finance.

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