If you have come to the end of your lease and you like your car so much you want to buy it, then you can choose the option of buying a car at the end of the lease. This is not a difficult task at all. First, let’s see what can make you want to buy a car at the end of the lease. Уou may want to do it if:
- You want to avoid paying penalties a) for excessive wear and tear, and b) for excessive miles you have driven.
- You do not want to lease a new car or buy one.
- You know the car’s history and it is reliable for you.
- The buy-out price in your lease contract is a very suitable one for you.
Now, the steps you should take while buying a car at the end of the lease.
- Read your lease contract once more. Find the fine print about the purchase option price. This price is established by the leasing company and it includes the residual value of the car at the end of the lease and also a fee specifically paid for the purchase-option (usually $300-$400). The residual value of the car is the estimated price of the vehicle value at the end of the lease. Once you know the residual value of your car, you will be able to compare it with the actual value or the so called market value of the car.
- Look through various websites offering the same model as yours with similar mileage and condition. This will give you the approximate market price of the car.
- Compare the two amounts. If the residual value of your leased car is lower than the market price, then you must buy the vehicle.
- If, however, the residual value of the car is not as low as you would like it to be, do not be disappointed. A car leasing company will be glad to hear of your buying a car at the end of the lease. So, all you need is to practice some good negotiating tactics.
- While negotiating, do not reveal the fact that you want to buy the car for example because it has excessive wear and tear on it. If the leasing company suspects this, they will never lower the price.
- Also, if you choose buying a car at the end of the lease, you had better buy an extended warranty with it. Because the one you have been provided with when leasing the car may nearly be expiring. Your leasing company may suggest you quite a bearable price for the extended warranty.
Good Luck!