Leasing cars has historically been a great way to drive newer vehicles, change out a vehicle for a newer model every couple of years, and enjoy a vehicle without worrying about major repairs once the vehicle gets old. However, at some point, buyers will consider whether or not they should purchase a leased car. With everything happening right now, it may actually be a great idea to buy the leased car, especially if any of the following applies to the buyer.
If You Like the Car
Buyers who like the car will want to consider buying it at the end of the lease. They’re already comfortable driving it, they know they like how it drives, and they’ll enjoy continuing to drive it after the lease ends. Though this doesn’t have any financial basis, how someone feels about the vehicle can make a big difference. For buyers who enjoy the vehicle, buying it gives them the chance to continue enjoying it much longer.
If You Don’t Want to Shop for a Car
Shopping for a vehicle takes a lot of time, especially when buyers aren’t sure what they want. If someone already has a leased vehicle they like, buying it can save them the hassle of finding the right car to buy. Plus, since the pandemic, used and new vehicles have increased in price significantly because they’re often harder to find.
Used vehicles are selling faster and for a much higher amount because there aren’t many new vehicles ready to purchase. Buyers often have to buy a used vehicle if they need one immediately because there’s no telling when the new models might come in.
New vehicles aren’t available due to supply issues. Many vehicles are waiting for computer chips to arrive before they can be sold, so they’re not available yet, and manufacturers aren’t sure when they will be available. This means they can’t be sold or leased, so no matter which path a driver wants to take, they may have trouble and end up without a vehicle to drive.
If someone already has a vehicle they enjoy driving, and it’s the end of the lease, buying it allows them to avoid waiting for the right car to appear or struggling to find a new vehicle that meets their needs. This does, of course, depend on the vehicle the buyer is currently leasing and what they’d like to purchase, but it is a good reason to go ahead and buy the leased vehicle instead of looking for something new to lease or trying to find a new car to buy.
If You’ll Get a Great Deal
When a vehicle is first leased, the contract includes a buyout price. This is the amount the driver will need to pay at the end of the lease to purchase the vehicle. The buyout price can’t be changed once the contract is signed, so the purchase price of the vehicle is at least a couple of years old right now. For those who are leasing and considering buying the leased vehicle, this could lead to an amazing deal.
Due to supply issues with vehicles, new and used vehicles have gone up in price significantly. That means they’re likely valued much higher than the amount they were two to four years ago before the pandemic began. When someone decides to buy out their lease right now, they’re paying a pre-pandemic price for the vehicle – so they’re saving a lot of money compared to purchasing the same vehicle new. When there’s a potential to save thousands of dollars, it is definitely a good idea to consider buying the leased vehicle instead of letting it go and buying a different new vehicle.
If the Car is Still in Great Shape
Vehicles that are leased must be kept in good shape, and there is a maximum amount of mileage the driver can use before they have to pay added fees at the end of the lease. This means the vehicle is still going to be in great shape once the lease ends. By taking care of the vehicle properly, the driver can be sure that it will continue to be in great shape for as long as possible. This means they’re not going to have to worry as much about unexpected issues with the vehicle or having to pay a lot of money to have it repaired.
If You Don’t Want to Lease a New Vehicle
Leasing may not be a good option right now for a number of different reasons. Finding a vehicle to lease can be more difficult because of the supply issues right now, so the driver may not be able to find the vehicle they want to lease if they decide to end their current lease. On top of that, the cost to lease compared to the cost to buy is becoming closer together. It’s no longer as great of an idea to lease because the savings just aren’t there.
If a driver already has a vehicle that’s in good condition and that they enjoy driving, it’s likely going to be a much better deal to just continue driving it because of the inability to find new vehicles for lease and the cost comparisons based on today’s pricing. Even if the driver does enjoy leasing, it may be beneficial to buy the vehicle and keep it for a few years while the supply issues are fixed and the pricing settles down again, and then sell it to start a new lease.
Buying a leased vehicle is a personal decision, but right now, it may be the better decision for most people. Due to the current state of the vehicle marketplace, it’s going to save buyers time, money, and more to buy out the lease compared to trying to lease a new vehicle or find one to purchase. Though buyers may be interested in a new lease or driving a different vehicle, with the cost of cars right now and the difficulty in finding new vehicles to rent or buy, buying out the lease is a good idea.
Looking to refinance your leased vehicle? Contact Vantage Finance and see how we can help!
