While the lease agreement will terminate in a few months for you, and you’re still wondering whether or not to buy your leased car, there are chances that you will make a hefty decision. To avoid such a tragic situation, you must think-out the whole process thoroughly to know what is best for you when it comes to leasing and buying.
Leasing can be a fiddly process and that is why it is important for you to have good knowledge about it. You agree to lease a car from a leasing company, pay monthly or quarterly instalments (depends on the mode the company offers), then in the end decide whether you want to buy the leased car, or just return it.
You could also consider car lease handover if you want to terminate your lease agreement before it actually terminates. You can handover your leased car to a person who is looking for leasing. This way both you and the other person can reduce the expenses.
But when returning or buying your leased car, you may be subjected to make a mistake provided the decision was not though-out well.
Consider the following reasons to make a wiser decision.
BUYING PRICE IS LOWER THAN THE MARKET RATE
Calculating the price of a car that is 24-48 months down the road requires a bit of maths. That value is also called residual value. And this residual value is what the lease company takes into account before leasing. That is, the difference between the price of a new car and the residual value divided by the number of months in the lease will give the monthly payment value for leases.
when the residual value is set too high, the monthly payment will automatically increase.
If the residual value is set really low, then the monthly payment will correspondingly increase and you could buy the car in the lease end for a lesser amount. And most leasing companies generally sell negotiate with the buyer to avoid all the trouble. This means you’ll have a good shot at bargaining.
THE CONDITION OF THE CAR
Generally, most leasing companies will cost you for the damages that you have caused to the leased car. And all those tiny scratches that you thought were inconspicuous won’t actually be viewed the same way by the company. You’ll have to pay a hefty amount for that.
The best way to avoid this is by buying that car.
What if the car is in excellent shape? What if you have done everything that was needed to be done for keeping the car intact? If you still love the car as much as you did when it was in your care, then buying it may be a good choice.
IF YOU WENT BEYOND THE ALLOWED MILEAGE
Yes, car leasing companies do cost you extra if you cross the limitations such as car damage and exceeding the mileage.
If you own a car, and if you ever decide to sell it, then you will have to check the number of kilometres you have driven. The residual value decreases as the number of kilometres driven increases.
Think again if you want to buy the leased car. Yes, you will be avoiding the fiddles of car shopping by buying the leased car, but you must think it through. Think if the car is worth all the trouble. Make a wise decision so that you don’t ever have to regret your choice in the long run.