After weeks of searching, researching, negotiating, and more searching, you finally find the best car for you. You signed a lease from the local dealership and you get to drive off the lot in a brand new car. Now fast forward 24 months to when the two year lease is up and you are contemplating either extending the lease, making a purchase, or returning the vehicle. So what do you do? Below are a few things to check out when you are wondering what to do after your lease ends.
Take a look at your lease contract and see what the residual value is. This is the price that the car is worth at the end of the lease. If you want to purchase the car you’ve leased, you are guaranteed to pay that price. While many companies are very accurate when they are pricing out their cars, there are always unforeseen circumstances that may make the price fluctuate.
Check out Superior’s Honda Fit in New Orleans
Check various sources like the Kelly Blue Book or Edmunds to see what the current market value is for your car. If the values are fairly close, then the lease buyout is a great option. Any difference of $500 or more, then the lease buyout may not be the best.
Knowing when and what to negotiate is important. If the residual value is higher than the current market value, then you have more room to negotiate. If the value of the market is higher than the residual, the leasing company will want it back so they can sell it for more.
About the Author: Max is a marketing assistant for Superior Honda, a new and used New Orleans car dealership.