(ThyBlackMan.com) Leasing cars is becoming increasingly popular in the US. According to recent statistics, about 28% of cars leaving dealerships are leased. But many of those who lease cars often wonder if there is an option to keep the vehicle once the lease is up. Have you ever considered leasing a vehicle with a buyout option in the end? This article will take a closer look at what this type of car financing entails.
Buying the car after the contract lease ends
When you look at NJ car leasing deals, you have three options in the end. You either return the car to the dealership, renew your lease contract, or buy the vehicle. If your choice is a buyout, the lease agreement will include the purchase price. The purchase price is also called the residual amount, which refers to the value of the car after the lease ends.
However, a buyout may also entail additional charges such as taxes and fees. The fees depend on the agreement. For example, you may need to pay extra for going above the mileage limit. But there are some lease agreements where if you opt to buy the car, additional charges for mileage and wear-and-tear are waived.
Is there an option to negotiate the purchase price?
In most New Jersey car lease deals, there is an option to negotiate the price. Leasing companies sell used cars at auctions, and the process may be expensive. Therefore, if a customer offers to buy the vehicle after the lease, it is often less costly for the leasing company.
If you want to have a chance at a better purchase price, take time to research the car’s market value before the lease term ends. On the other hand, if you are applying for a loan to buy the car, look for the best rates before you negotiate with the leasing company.
Can you end the lease early and buy the car?
Yes, most NJ car lease deals have an early buyout option. However, there is usually an early termination fee. The cost of ending your lease early depends on the amount of time left on your contract. If you decide to get out of the lease early, always check the details of the lease agreement and be aware of the extra charges you need to pay.
Options for financing a lease buyout
If you want to buy the car but do not have cash, your best option is financing. Some of the major banks around the country offer loans for lease buyouts. You can also compare auto loan rates online without hurting your credit score.
In addition to an auto loan, another option you may consider is getting a personal loan. For example, an unsecured loan does not require the applicant to provide collateral.
Buying the car after your lease term ends is indeed a viable option. Always compare your financing options and find out which one you are most qualified for when you apply. Therefore, even without cash on hand, you can still afford a lease buyout with the best financing rate possible.
Other sources: https://www.supermoney.com/can-you-lease-a-car-and-then-buy-it/
Staff Writer; Bobby Shaw
