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Can You Purchase A Car Mid Lease?

If you are interested in purchasing a car mid-lease, then you will be happy to know that you can do so. In fact, you can even decide to trade it to the dealer and take interest in another purchase. Even though it’s possible to buy a car when you’re in the middle of a lease agreement, there are advantages and disadvantages to take into consideration before making a final decision.

To make a step towards this possibility, you should first of all find out the buyout price of the vehicle you’ve leased. This value is usually a sum between the remaining monthly payments and the buyout amount specified in the lease contract. The same figures are taken into consideration by a dealer when you want to trade the leased car for another one. This amount can be a source of negative equity for a new car’s price if you decide to trade the car.

When you decide to purchase a car mid-lease you need to make sure you don’t owe more than the leased car’s current market value. That depends on the payments that have been already made and on the lease term specified in the contract and can be a source of negative equity. In order to avoid such a situation, you should find out what’s the current retail price of the leased car. You can easily find the information on Edmunds.com or in the Kelley Blue Book. If you determine that you’re currently experiencing an upside-down lease, it can prove hard to get approved the loan you need in order to buy the car mid-lease. If you consider that buying the car is the best option, in order to reduce the impact of the negative equity, you can provide a down payment. To make sure you get the rest of the money necessary through a loan, you should include all the car’s options in your request. Banks tend to take these details into consideration when approving loans.

Because of all this negative equity, you will end up having to pay a lot of money if you decide to buy the car in the middle of the lease. If you really want to buy the car you’ve leased, you should wait until the end of the lease, because a lease-end buyout will definitely prove to be more cost-effective. The time when it’s more advantageous to buy the lease car mostly depends on the agreement’s content. Many such agreements don’t even offer the early-buyout option while others allow a purchase only during a certain period of time. But, no matter when you’re allowed to purchase the leased car, you should always make sure you are making a wise decision for your budget. Especially if you’re buying the car at the end of the lease, you should make sure the money you’re paying isn’t significantly more than the cars market value and that you’re buying a reliable car. Some choose to buy the leased car because they don’t want to pay penalties for the many extra miles they’ve driven or for excessive wear and tear.

If you are determined to make a good deal by buying the leased car you should make sure you’re talking to the right person. You should have some figures in mind when you start the negotiation and even if they don’t accept your offer on the spot, you should leave a phone number and wait for a call. The leasing company representative might needs some time to think things through. It can take as long as a few weeks, so start the negotiation in advance.

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