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Buy a car at the end of your lease.

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Buy a car at the end of your lease.




Buy a car at the end of your lease.

You’ve come to the end of your lease and you like you car enough you want
to keep it in the driveway. Just like buying a used car, there is some
research to be done to nail a good deal.

First, you need to know the cost of buying out your lease. Read the fine
print of your contract and look for the “purchase option price”. This
price is set by the leasing company and usually comprises the residual
value of the car at the end of the lease plus a purchase-option fee
ranging from $300 to $500. When you signed on the dotted line, your
monthly payments were calculated as the difference between the vehicle’s
sticker price and its estimated value at the end of the lease, plus a
monthly financing fee. This estimated price of the car value at the end
of the lease is what is termed in leasing jargon “residual value”. It is
the expected depreciation – or loss in value – of the vehicle over the
scheduled-lease period. For example, a car with a sticker price of
$40,000 and a 50% residual percentage will have an estimated $20,000
value at lease end.

Now that you know the cost of buying out your lease, you need to determine
the actual value, also termed “market value”, of your vehicle. So, how
much does your car retail for in the market? To pin down a good, solid
estimate you need to do some pricing research. Check the price of the
vehicle, with similar mileage and condition, with different dealers. Use
online pricing websites, such as Cars.com, Edmunds.com and Kelly Blue Book
for detailed pricing information. Gleaning pricing information from various
sources should give you a fair estimate of your vehicle’s retail value.

All you have to do now is compare the two amounts. If the residual value is
lower than the actual retail value, than you’re into a winner.
Unfortunately, there is a good chance a car coming off a lease is a little
on the high side.
Don’t despair though. Leasing companies know as much that residual values
on their vehicles are greater than their market value and as such are
always on the look out for offers. You can knock down on the price of your
leased vehicle with some smooth negotiating tactics. Put forward a price
that is below your actual target and negotiate hard until you wind up near
that figure.

Categories: Auto
  1. gundie1972
    March 10th, 2012 at 20:51 | #1

    Derek and Cheryl have such amazing chemistry and they're both brilliant dancers, they should go on strictly or dancing with the stars together. They'd have a pretty good chance of winning!! :D Love u Cheryl!!!!!

  2. Nghiem
    March 11th, 2012 at 08:16 | #2

    Your understanding is incorrect. You pay for rent by the month, not the day, unless the lease specifically allows it. If the lease period ends at the end of the month then you need to give notice effective the end of the month. Unless your lease ends on the 13th of the month you can't just pick that day unless you're willing to pay for the entire month of December's rent.

  3. tamarack58
    March 11th, 2012 at 10:47 | #3

    I don't think this phenomena has much to do with the mechanical qualities of the machines in question. It's all about the branding. Harley did a really great job of making suburbanites (doctors/lawyers/other upper-class white people) think that owning a harley makes them part of a "tough-guy" crowd. Also, there's a certain nostalgia to owning out-dated technology, like a harley v-twin. Harley also produces Buell, but those don't retain their retail value nearly as well as the harley cruisers.

  4. tom_gpp
    March 11th, 2012 at 12:49 | #4

    You are right, but different cars can have widely different residual values even if the prices are the same. Cars that hold their resale values well, such as Honda, Lexus, BMW, are better to lease than cars with low future resale values, such as Kia, many Fords, many Chevrolets. Here's an article with more details:

    .

  5. jdotsta
    March 11th, 2012 at 19:13 | #5

    - Yes. Murder includes the act of killing (actus reus) with the intent to kill (mens rea.) Manslaugher is the act w/o intent, but from negligence or gross negligence. Folks who run over grandma because they drank to much will be convicted of manslaugher. Folks who run over grandma because a bus ran a red light and the driver swerved to avoid the bus but hit grandma accidentally have a good chance of no conviction if no other circumstances exist to prove negligence. Make sense?

  6. LondonJobsUK
    March 12th, 2012 at 00:46 | #6

    Leasing companies –

  7. Lemonluvzyo

    wow you sound so beautiful singing this wonderful song that I think this is the next song you should sing on youtube idol because this is the beautiful song that defined you as a superstar . once producers hear the wonderful power of your beautiful voice . the first thing they will say is sing on the dotted line .but if that happen always have a lawyer look at it first after all you should know all your music rights before you sign any contract .

  8. heretic1915
    March 12th, 2012 at 10:55 | #8

    what if you dont have any experience with much? like i do with computers (microsoft word/excel/etc.) but not much else. do i still have a good chance getting a job? (i am 15, almost 16 so i will be trying once i am 16)

  9. bundysmom
    March 12th, 2012 at 22:48 | #9

    The owner of a lease car is (drum roll please) THE LEASING COMPANY.

    If your car is from Honda, it is probaly something like "HONDA CREDIT CORP" or "HONDA ACCEPTANCE CORP"

  10. rant – Twitter Search
    March 13th, 2012 at 02:59 | #10

    Tea cos urge govt to keep ‘lease period’ at 30 yrs

  11. pyrodamsel

    RT Was just asked what the official definition of an “enterprise” is.. Don’t get me started. < Anything sold for 15x it’s retail value

  12. Snarky CowManFish with Wings
    March 13th, 2012 at 12:07 | #12

    Your understanding is incorrect. You pay for rent by the month, not the day, unless the lease specifically allows it. If the lease period ends at the end of the month then you need to give notice effective the end of the month. Unless your lease ends on the 13th of the month you can't just pick that day unless you're willing to pay for the entire month of December's rent.

  13. bundysmom
    March 13th, 2012 at 12:26 | #13

    The owner of a lease car is (drum roll please) THE LEASING COMPANY.

    If your car is from Honda, it is probaly something like "HONDA CREDIT CORP" or "HONDA ACCEPTANCE CORP"

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