5 Steps to Buy-Out Your Vehicle at Lease End
It is lease end time, you’re about to make your final payment, you like the vehicle, and are thinking you would like to keep it.

In a lease, you have the option of buying it; however you will want to be sure you really are getting a good deal in the process.

First thing to remember in a lease is that you pay only for the part of the vehicle’s life that you use plus a finance charge. When your lease was calculated, the payment was based on what the new vehicle was worth minus what it was expected to be worth when the lease is over (after having driven the number of miles/kilometers you were allowed) add a finance charge. The buyout amount is roughly the original price minus what you paid for your time/miles. To buy it, you pay that plus a purchase fee often.

Here are 5 steps that will help you out.

1) What’s the buy-out amount? In your lease contract, you will find the buyout amount for lease-end as well as the fee (if any). Often it will be called “purchase option price” or “lease end buyout”. The terms might change from one state (or province) to the next based on local law, but they all come down to a buyout amount. With this information, you now know how much you can buy it for by the contract, but that’s not enough. It’s smart to see if it’s really worth it.

2) What is the same vehicle selling for locally? You will want to find out what it is really worth where you live, by checking local dealers, the classified ads, and anywhere else that you might find the same vehicle in the same condition and mileage.

3) What do the statistics say it’s worth? The next step is to find out what the book value of the vehicle is. While there is more than one, there is usually one that is pretty much the standard in a particular given state/province. Find out which one is preferred for yours and put the best weight in it, though check the rest too. Some of these sources include Kelley Blue Book (http://kbb.com), National Auto Dealers Association (http://nadaguide.com), Edmunds Car Buying Guide (http://edmunds.com), and http://cars.com. Each site has forms that will take you through describing the vehicle, and in the end, will give you a retail value.

4) Do you still want the vehicle at this point? After the first 3 steps, do you still want to buy the vehicle? Do you still think you will get a good deal on buyout? Is it worth the buy-out amount, or can you replace it with a comparable vehicle elsewhere? You may still be able to negotiate a cheaper buy-out, so don’t stop here. Figure out what you are willing to pay for it, and don’t go a penny higher…

5) Get it for less! The lease company isn’t stupid. At this point, they know how much they will probably get for your car, at auto auctions usually. Most of the time, it’s less than the buy-out amount. Contact the lease company, find out the process of making an offer, and offer what you want to pay. After some negotiation, you might still have your car free and clear!

 
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