Should I Buy My Leased Car?
If you’ve chosen to lease your current vehicle and your lease term is almost up, then there’s a decision you have to make. At the end of your lease, you have the option to purchase your vehicle. If you like the car and you’ve taken good care of it, this could be a great decision for you. Ultimately, though, it depends on whether or not you’re getting a good deal with the purchase. Here are a few things to consider.
The residual price is the value the leasing company estimated your car would have at the end of your lease term based on current market trends and consumer trust in your particular make and model. At the end of the lease term, the company will have the obligation to offer to sell you the vehicle at this residual value based on their contractual obligation. Depending on whether they guessed low or high, this good be a good deal for you or it could be something you want to pass up.
Did You Like and Take Care of the Car?
If you’re considering purchasing the vehicle, then there’s a pretty good chance you were happy with the way it performed throughout your lease period. Unlike purchasing other used cars, you’ll also have the added benefit of knowing exactly what the car has gone through before you purchased it—you were the one who drove it, after all! This means you don’t have to take the dealer’s word or the word of the previous owner, because you know whether you took care of regular maintenance and gave it regular car washes, and whether there were any collisions.
Making the Final Decision
If the car is in great shape, has performed well for you, and you know its history, then those could be big selling points. Ultimately, though, you’ll want to check out the residual price against the wholesale market value, or actual cash value, which can be checked at websites like Kelley Blue Book. If the residual price you’re being offered is higher than the actual cash value, then it might not be a great deal.
If it’s around the same value, then it might be a good deal based on what you know about the car. If the residual price you’re being offered for the car is significantly less than the actual cash value, then you could be getting a great deal and should consider taking advantage of it—especially if you really like the car. Get in touch with Earl Stewart Toyota if you have any questions about leasing a car, in-house financing car dealers, or need some guidance!