It’s no secret that shopping for used cars is a lot more complicated than it used to be. If you have a lease ending, should you buy it out?
Does this option make sense in 2024? Let’s take a closer look.
Fast Facts About Lease Buyouts
Find out the facts about your lease first. Check your paperwork and ask your lessor what the price is to buy the car out of the lease. Look up the current value of your vehicle, and if it’s higher than the lease buyout price quoted, then you should consider buying.
If you’re nearing the end of your lease and dreading shopping for another car, start by finding out what the payment would be to buy it out. You can usually find this information by logging into the account where you make your payments. If it’s not clear what the buyout amount is, you can also call your lessor to find out for sure.
It might be a good idea to call your lessor anyway so that you can find out if there are any early payoff fees or any other fees associated with buying out your lease.
Research Your Vehicle’s Value
The next step is to research the value of used cars that match your vehicle. Keep in mind the current mileage of your car and any significant equipment options that your car has. If you have the original window sticker of your car, you can use that to research the value. Once you figure out the value of your vehicle, the math is pretty simple.
Is your car worth more than the buyout price? If so, then you should take a hard look at buying it. For example, if your quoted buyout price is $27,000 but the car now shows a current value of $32,000 as a trade-in, then you’re saving $5,000 by buying it out.
When Should You Do a Lease Buyout?
If your buyout price is at or below the current market value of your vehicle, you should consider buying it out. If the car still fits your lifestyle and is running well with relatively low miles, keeping it is usually a good choice.
Even though word on the street says that prices for used cars have gone back to normal, this isn’t exactly true. Inventory remains tight, which makes shopping for used cars somewhat stressful. If you can save yourself some time and effort by keeping your leased vehicle, you should probably consider it.
When To Avoid a Lease Buyout
There are some situations where you should turn in the keys and walk away. If the car has had a lot of problems in the time you leased it or if it has low predicted reliability, you might want to walk away. Your manufacturer’s warranty probably won’t extend much past the end of the lease, which could leave you with all the problems.
The other situation when you should avoid the lease buyout and take your chances with other used cars is if your buyout price is higher than the market value of the car.
This post may contain affiliate links. Meaning a commission is given should you decide to make a purchase through these links, at no cost to you. All products shown are researched and tested to give an accurate review for you.
