It is a time to decide for anyone facing an expiring car lease: either buy the car from the financial services Strathmore company or returns it, find a new set of wheels. Deciding what your current vehicle should do is always a personal choice.
Perhaps you enjoy your new car and are keen to maintain it. Or, maybe you’ve decided to buy your next one instead of leasing it and this time you’re considering choosing a used car.
Financial services Oak Park helps you decide to choose the better option among car leasing and purchase.
Essential to the role factor is the asking price of the leasing firm. There are also certain overall advantages to buying your existing car. For one, you know the history of the vehicle that is an advantage most frequently used car buyers have not.
This is particularly true if you’ve pampered your car while it’s in your care. Were you the kind of driver carefully coming in for a change of oil when it’s due? Do you keep your car in a garage all year round to keep the finish immaculate?
If so, you’re going to buy a car that’s in excellent shape, you know. Strangely, if you haven’t treated the car particularly well, buying the car too can be a plus.
Doing the Math
Of course, only part of the equation is those potential benefits. The biggest question for most drivers-after “Do I want a new car?”-is whether the purchase price is a good deal. Some leases also have a “buyback fee” which is the cost you will have to pay if you want to hang onto the vehicle.
It’s a leasing industry quirk that this buyback price is determined before you start your lease. In essence, your monthly outlay is the car’s selling price minus its residual value when the lease is up, divide it by the number of months on the contract.
Negotiating the Price
In some instances, haggling with the leasing firm will not bring much fruit. This applies in particular to brand-specific leasing companies which have a reputation for standing firm on their purchase price.
If the leasing company is a bank or credit union, experts will say you may be luckier. Keep in mind that these lenders somehow have to unload that car, either by selling it to a dealer or by putting it on the auction block.
Sometimes they try to escape the time and hassle that comes with selling the car to another customer. As such, it might be worth figuring out who is signing up to your contract and trying to negotiate.
The Bottom Line
This often takes a bit of math to determine what to do with your rented car. Comparing the buyback offer of what the vehicle will be going for on the free market is a smart idea.
Don’t forget to figure in any extra costs, such as fuel taxes, which could make the vehicle more attractive to purchase.