How to Purchase a Leased Car at End of Lease?
If you’ve been leasing a car and are considering keeping it for the long haul, purchasing it at the end of the lease may be a great option for you. Here’s how you can do it:
1. Determine the Residual Value: The first step is to find out the residual value of the car, which is the predetermined amount you can purchase the vehicle for at the end of the lease term.
2. Assess the Market Value: It’s also important to research the current market value of the vehicle to ensure that the residual value is in line with the actual worth of the car.
3. Contact the Leasing Company: Get in touch with the leasing company to express your interest in purchasing the vehicle at the end of the lease and inquire about the necessary steps to do so.
4. Negotiate the Purchase Price: You may have room to negotiate the purchase price with the leasing company, especially if the market value of the car is lower than the residual value.
5. Secure Financing: If you need a loan to buy the car, make sure to secure financing before the end of the lease term to streamline the purchasing process.
6. Complete the Purchase Agreement: Once you’ve agreed on the purchase price and secured financing, you’ll need to complete a purchase agreement with the leasing company to transfer ownership of the vehicle.
7. Pay any Fees: Be prepared to pay any additional fees associated with purchasing a leased car, such as a purchase option fee or disposition fee.
8. Inspect the Vehicle: Before finalizing the purchase, inspect the car to ensure that it’s in good condition and meets your expectations.
9. Complete the Paperwork: Make sure to fill out all necessary paperwork and obtain any required signatures to officially purchase the car at the end of the lease.
10. Transfer Ownership: Once all the paperwork is completed and the purchase is finalized, the leasing company will transfer ownership of the vehicle to you.
11. Enjoy Your New Car: Congratulations! You now own the car, and you can enjoy driving it without worrying about lease restrictions.
12. Consider Extended Warranty: Since the car is no longer under a lease warranty, you may want to consider purchasing an extended warranty for added peace of mind.
FAQs:
1. Can I purchase a leased car before the end of the lease?
Yes, most leasing companies allow you to buy out the lease early, but you may have to pay early termination fees.
2. What happens if the market value is lower than the residual value?
You may still be obligated to pay the preset residual value, even if the market value of the car is lower.
3. Can I negotiate the purchase price of a leased car?
Yes, you can try to negotiate the purchase price with the leasing company to get a better deal.
4. Do I need to get the car inspected before purchasing it?
It’s recommended to get the car inspected to ensure that it’s in good condition and doesn’t have any hidden issues.
5. Can I use the same financing company for purchasing a leased car?
Yes, you can choose to use the same financing company that you used for leasing the car or shop around for better rates.
6. What happens if I can’t secure financing for buying the car?
If you can’t secure financing, you may have to return the leased car or explore other financing options.
7. Are there any fees associated with purchasing a leased car?
Yes, you may have to pay a purchase option fee, disposition fee, or other charges when buying a leased car.
8. Can I trade in a leased car for another vehicle instead of purchasing it?
Yes, you can trade in the leased car for another vehicle at the end of the lease term if you prefer.
9. Can I buy a leased car with cash instead of financing?
Yes, you can purchase a leased car with cash if you have the funds available to do so.
10. Do I need to inform the leasing company of my intention to buy the car?
Yes, you should contact the leasing company and express your interest in purchasing the vehicle before the lease term ends.
11. Can I sell a leased car to a third party instead of buying it myself?
Yes, some leasing companies allow you to transfer the lease to another party who can then purchase the car.
12. What happens if I exceed the mileage limit on the leased car?
If you’ve exceeded the mileage limit, you may have to pay additional fees at the end of the lease term, regardless of whether you buy the car or return it.