Lease-End Buyout Guide: Evaluating How and When you Should Purchase your Leased Car
When you receive a notification that your Sioux City automotive lease is ending soon, it's time to decide what the next step will be. For many drivers, that means simply returning their lease, although it isn't your only option. At Jensen Subaru, we're outlining how to decide if buying your lease is right for you.
Determine Your Buyout Price
Before you can decide if you want to purchase your lease, you need to know how much you'll pay for it. Your initial lease contract should have a buyout price on it. Typically, to purchase a lease, that will also include a buyout fee, title transfer fee, and sales tax, which can add to the cost. However, you'll avoid the disposition fee that is usually involved with returning your lease.
Determine Your Vehicle's Market Value
Next, you need to determine your vehicle's market value. While it may not be the exact price, it can be helpful to look up your vehicle's trade-in value to get an idea of its current value. If your vehicle's buyout price is less than its market value, it could be a good financial decision to purchase your vehicle. On the other hand, you may not want to purchase it if it's the opposite.
Consider Your Vehicle's Condition
Naturally, most drivers don't want to commit to a vehicle that is having issues or is damaged. However, it could be the better move for you financially. When you return your lease, your vehicle is carefully assessed, and you will owe penalty fees for anything that is outside normal wear and tear. Carefully inspect your vehicle and consider its overall condition to decide if it's better to buy it.
Consider Your Future Plans
It's also important to consider your needs for a vehicle. Are you ready to drive a vehicle long-term? Does your lease still meet your current needs? On the other hand, if you enjoy consistently upgrading to a new vehicle, it may be time to shop our new Subaru vehicles to start a new lease.
Return Your Lease in Sioux City, IA
We make it as easy as possible to return your lease at our Subaru dealership in Sioux City, IA. If you're interested in purchasing it, that's a streamlined process as well. Visit us to discuss your options today!
