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How to Decide Whether to Purchase Your Vehicle at Lease-End
CarMan@Edmunds
Member Posts: 38,514
in General
The following guide will help you decide whether to purchase your vehicle at the end of your lease or just walk away from it.
Step 1: Find Out Your Vehicle's Purchase Price
Your vehicle's end of term purchase price should be listed on the contract that you signed when you originally leased it. Having said this, you should always place a call to the bank that you are leasing your car or truck through just to make sure that you have the correct figure. When you do so, it never hurts to try to haggle with them. Some banks will negotiate the lease-end purchase prices of vehicles. If your initial contact at your bank is not willing to lower your vehicle's purchase price, you may have better luck if you work your way up the ladder to a manager. There is a good chance that they will not lower your vehicle's price, more often than not they will not, but you don't have anything to lose by asking.
Step 2: Find Out Your Vehicle's Current Market Value
Now that you know exactly how much money it is going to cost you to buy your leased vehicle you need to compare that figure to its current value on the open market. You can find out approximately what your vehicle is worth by looking up its Edmunds.com True Market Value using the Edmunds.com Used Vehicle Appraiser. You also may want to stop by the "Real-World Trade-In Values" discussion that resides on Edmunds.com's Smart Shopper Forum. The knowledgeable community members who frequent that discussion are often kind enough to give their opinion on vehicles' values.
Step 3: Compare the Purchase Price to the Real World Value
Now it's time to compare how much your car is worth in the real world to its value on the open market. If it will cost you less than or around the same price to purchase your leased car or truck as it would cost you to purchase a similar used one, you may want to consider buying it.
Step 4: Make Your Decision
If your vehicle's current purchase option price is reasonable, you have to consider if you want to purchase it. If you enjoy driving your vehicle and it has never given you any major mechanical problems and has never been in any major accidents you may want to consider buying it. It almost never makes sense to purchase a vehicle that has been in an accident because of the diminished value that accidents cause vehicles to have. If on the other hand, your car or truck's purchase price is a little on the high side, just turn it in and walk away from it free of charge (provided you don't have to pay an excess mileage or excess wear and tear penalty).
Car_man
Host
Prices Paid: Buying & Leasing Experiences Forum
Step 1: Find Out Your Vehicle's Purchase Price
Your vehicle's end of term purchase price should be listed on the contract that you signed when you originally leased it. Having said this, you should always place a call to the bank that you are leasing your car or truck through just to make sure that you have the correct figure. When you do so, it never hurts to try to haggle with them. Some banks will negotiate the lease-end purchase prices of vehicles. If your initial contact at your bank is not willing to lower your vehicle's purchase price, you may have better luck if you work your way up the ladder to a manager. There is a good chance that they will not lower your vehicle's price, more often than not they will not, but you don't have anything to lose by asking.
Step 2: Find Out Your Vehicle's Current Market Value
Now that you know exactly how much money it is going to cost you to buy your leased vehicle you need to compare that figure to its current value on the open market. You can find out approximately what your vehicle is worth by looking up its Edmunds.com True Market Value using the Edmunds.com Used Vehicle Appraiser. You also may want to stop by the "Real-World Trade-In Values" discussion that resides on Edmunds.com's Smart Shopper Forum. The knowledgeable community members who frequent that discussion are often kind enough to give their opinion on vehicles' values.
Step 3: Compare the Purchase Price to the Real World Value
Now it's time to compare how much your car is worth in the real world to its value on the open market. If it will cost you less than or around the same price to purchase your leased car or truck as it would cost you to purchase a similar used one, you may want to consider buying it.
Step 4: Make Your Decision
If your vehicle's current purchase option price is reasonable, you have to consider if you want to purchase it. If you enjoy driving your vehicle and it has never given you any major mechanical problems and has never been in any major accidents you may want to consider buying it. It almost never makes sense to purchase a vehicle that has been in an accident because of the diminished value that accidents cause vehicles to have. If on the other hand, your car or truck's purchase price is a little on the high side, just turn it in and walk away from it free of charge (provided you don't have to pay an excess mileage or excess wear and tear penalty).
Car_man
Host
Prices Paid: Buying & Leasing Experiences Forum
0
Comments
I'm nearing the end of my lease of my 08 Jeep Grand Cherokee Overland. It is worth slightly more than I owe, perhaps $700-800. I am currently working with a few Jeep dealers to purchase (not lease) an 2011 Grand Cherokee Overland. My question is, rather than just turning in my current Jeep, can I bargain with the dealer to get some money for it on the deal? I know if it were worth less, I would be able to turn the car in at the end of the lease (in March), but since it is worth more, shouldn't I be able to negotiate for that little bit extra? This includes the residual value and the couple payments I still owe-- it is still worth more than what I owe.
Never have been in this situation before, so would like your opinion. Thanks.
Car_man
Host
Prices Paid: Buying & Leasing Experiences Forum
Love the new ride. I loved the old one, but this one is even better!
Thanks for the response.
Happy new year!
Safe to say I will never do business with Ally Financial or Roger Beasley again.
Thank you!
ASY.
Is there any way to negotiate the payoff to be the residual with the leasing company or the lessor (Wells Fargo)? Also, I have excess mileage and will end up paying about $3000 if I turn in the lease. 2008 Toyota Prius with 78,000 miles.
What is my best option...turn-in, pay the $3000, and just get another car OR payoff and hope that I can sell to try and breakeven with a dealer OR try to find a dealer that will payoff the lease??
I am just trying to figure out what options other than purchasing the vehicle myself will get me away from paying the mileage?
I leased a Prius II in 2010, for three years. The lease is up in 2 weeks. According to your used car appraisal, the car is worth the same or slightly more than the option to buy amount listed in my lease of $15,504. As the car has worked well for me, has 28k miles on it, and hasn’t been in any accidents, I’m considering purchasing it, and have some questions. First, is the amount listed in my current lease ($15,504), the total amount I would pay, or would there be additional fees, taxes, etc? If so, how do I find out what those fees and amounts would be ahead of time? Two, as Toyota is advertising 0% financing for 5 years for purchasing a new car; can I get 0% financing for purchasing my used/leased car?
Many thanks, I appreciate your assistance with this!