I travel a lot for work and want to lease a car for the low monthly payments, If I keep the car, is this a good option? buying something used may not be good because it will already have mileage on it.
2007-01-15 12:13:25 · 7 answers · asked by answer 1 in Cars & Transportation ➔ Buying & Selling
I currently have a cherokee that I leased and it is going to be up in May, but the "buy out" actually is good, if I add that along with my payments for the jeep, it actually equals pretty close to the cost of the jeep when I purchased it!!
2007-01-15 12:32:30 · update #1
never buy a vehicle that you personally lease as you will pay out the nose for it when your lease is up, thats why the lease payments are cheaper than buying, you can buy the same type vehicle used on the lot for about 3 or 4 thousand dollars cheaper than what you will be able to buy your own lease for when your lease is up.
2007-01-15 12:20:23 · answer #1 · answered by mister ss 7 · 0⤊ 0⤋
It's a great option to consider. You'll know the history of the car, and the driving habits of the person who owned it :)
When your lease is ending you have the option to buy it, or walk away.
When you are working out the lease for the car they should tell you the Gauranteed future value of the car at lease end.
Using made up pricing: For eg. Ford Focus purchase price is $16,000. At the end of a 3 year lease you have the option to buy it out for $9,000 which would be a good option if the car is worth at least that. But if your car has been in an accident or wrecked in anyway you may not want to buy it out and you don't have to at lease end. You can just walk away.
2007-01-15 20:36:07 · answer #2 · answered by cokoa_19 1 · 0⤊ 0⤋
If you are in a leased vehicle that you would like to keep, then it is a good option.
It is never a good "plan" to lease a vehicle that you really want to buy, with the intention that you will buy it at the end unless you will pay cash for the buyout.
On a lease, you pay "interest" or the lease charge monthly, and it generally equates to a higher interest rate, plus to finance after the lease term you pay more interest. Not to mention the fact that you are financing a car that will be out of warranty and depreciating faster.
But, if you love your lease car, buy it.
2007-01-15 21:56:12 · answer #3 · answered by Robert S 3 · 0⤊ 0⤋
It's not a bad option. You will know how well the car was cared for. And, something many people don't realize, you can call the bank (that owns the vehicle) at the end of the lease with an offer much less than the residual value. They will usually call back in a couple days with a counter offer, which also means they will finance it for you.
2007-01-15 20:21:30 · answer #4 · answered by Shaddup Libs 5 · 0⤊ 0⤋
It all depends on what your lease end residual value is. If the residual value is greater than the value of the car than why would you pay more for a car than it is worth? If your residual value is less than the vehicles value than it would be a good option to buy it. In most cases you are better off turning it in and buying a new one.
2007-01-16 12:55:13 · answer #5 · answered by Dave 2 · 0⤊ 0⤋
i mechanic for a living,,and i think its a good option to consider doing,,first of all you already know the vehicle you have ,,and you know how its been treated,,so as far as the vehicle goes,,this would be your best deal,,and the buy out isn't that bad,,it will balance out in the end to be about the same,,but better for you in the long run,,good luck with it,i hope this help,s.
2007-01-15 20:53:17 · answer #6 · answered by dodge man 7 · 0⤊ 0⤋
I wound up doing that because I needed a replacement truck. Wound up paying a lot more than if I had bought new or found a used one.
2007-01-15 20:22:17 · answer #7 · answered by auhunter04 4 · 0⤊ 0⤋