The Lease is Up — Should You Buy the Car?
Your auto lease gives you a right to buy the vehicle for a fixed price at the end of the lease. But should you? If you have less than three months remaining on a lease, now’s the time to decide. So, find your car lease and read on.
Do you like the car?
If it’s performed well with a minimum of unexpected cost and repair, then it might be good to renew the lease.
Will it still fit your needs?
If you’re driving a two-door sports coupe but are expecting a baby, you probably need a new car.
What is your lease-end buying price?
You’ll find the purchase option price in your car lease. Let’s assume it’s $14,000.
What is your vehicle actually worth?
How does your vehicle’s wholesale value compare with its lease value?
If it’s higher than the lease value, then it’s a good deal. In our example, your lease says you can buy for $14,000. You’ve confirmed wholesale value is $15,000. You’re buying a car you know and like for $1,000 less than its wholesale value. Buy the car.
What if the wholesale value is less than the lease value?
If it’s a lot less, don’t buy the car. It doesn’t make sense to buy a car if your lease’s buy-out price is $14,000, and the car’s wholesale value is only $11,000.
What’s the bottom line?
If your lease car is a good friend, and you can buy it for no more than $1,000 over wholesale value, that’s a smart buy. Your next smart decision is to finance it at Arsenal Credit Union.
Copyright 2017 Credit Union National Association, Inc. Information subject to change without notice. For use with members of a single credit union. All other rights reserved.
Auto loans at Arsenal Credit Union
If you’re ready to move on from the car lease and make a purchase, great! Arsenal Credit Union has auto loans for every budget. Not only do our auto loans feature low rates and flexible terms, but you can also get the same low rate for both new and used models (up to five years old). If you’re ready to own your car, apply online or visit a branch today.