Your auto lease gives you a right to buy the vehicle for a
fixed price at the end of the lease. But should you? If you have less than
three months remaining on a lease, now's the time to decide. So, find your
lease and read on.
1. Do you like the car? If it's performed
well with a minimum of unexpected cost and repair, then it might be good to
renew the lease.
2. Will it still fit your needs? If you're
driving a 2-door sports coupe but are expecting a baby, you probably need a new
car.
3. What
is your lease-end buying price? You'll find the purchase option price in
your lease. Let's assume it's $20,000.
4. What is your vehicle actually worth?
Check websites such as Kelley Blue Book and Edmunds.com. Let's assume your highest
wholesale value is $21,000.
5. How does your vehicle's wholesale value
compare with its lease value? If it's higher than the lease value, then
it's a good deal. In our example, your lease says you can buy for $20,000.
You've confirmed wholesale value is $21,000. You're buying a car you know and
like for $1,000 less than its wholesale value. Buy the car.
6. What if the wholesale value is less than the
lease value? If it's a lot less, don't buy the car. It doesn't make sense
to buy the car if your lease's buy-out price is $20,000, and the car's
wholesale value is only $17,000.
7. What's the bottom line? If your lease car
is a good friend, and you can buy it for no more than $1,000 over wholesale
value, that's a smart buy. Your next smart decision is to finance it at Coosa
Valley Credit Union.