What To Do If Your Vehicle Lease Is Ending?

  • 2 min read

The Options at Lease End

So, your car lease is nearing its end. What should you do? Well, you have three primary options to consider.

  1. Return to the Dealer

The first choice is simple: return the car to the dealer. If you’re under the mileage limit and the vehicle has no significant wear and tear, you can drop off the keys and walk away. But beware—you might be leaving behind some equity without realizing it.

  1. Trade-In or Turn-In?

Trading in for a new vehicle seems appealing, but understand the difference between a trade-in and a turn-in. The initial lease contract includes a fixed buyout price, typically below the expected value at the end of the term. However, the current surge in used car prices might mean your car is worth more than this buyout price. Be cautious: dealers might not inform you about this potential equity.

  1. Purchase Your Leased Car

If you’re fond of your leased car, consider buying it. The predetermined buyout price in your contract stands, irrespective of mileage or condition. This could be a great deal, especially if the market value now exceeds the buyout price. Plus, you know the vehicle’s history, a rare advantage when buying used cars.

Considerations and caveats

Buying your leased car might involve certain conditions—some leases mandate buying before reselling. Watch out for additional fees; any fees not mentioned in your original contract can’t be added later. Ensure you get the title transferred immediately upon purchase to avoid future hassles.

Early Planning and Research

Start this process early to avoid being rushed into an unfavorable deal. Research financing options; dealers may offer higher rates than your bank or credit union. Don’t rush into signing contracts without proper consideration.

Always ensure you have the transferred title in your name after buying the car. And if you have any questions or need advice regarding lease turn-ins, feel free to ask or leave your questions in the comments. This could be your chance to secure a fantastic deal on a vehicle you know well.

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