As your vehicle lease reaches the end of its term, you are presented with three options: return the car to the dealership, sell the lease or buy it outright. Each choice obviously has benefits and drawbacks that must be weighed before making a decision. In this article, we will discuss each option extensively so that you can choose wisely when your lease expires.
Return the Vehicle
Returning the vehicle is likely the easiest option when your lease comes to an end. If you return the car on time, without any damages or extra miles, you can avoid potential complications and fees. It is important to remember that leases typically come with a mileage cap — driving over this number can result in extra fees, so be sure to take note of your mileage and return the car with enough time to spare so as not to exceed the cap.
Sell the Lease
Selling the lease on your car can be a great option for those who want to maximize the value of their vehicle. By selling the lease, you can still retain any equity that’s left in the car and get some cash out of it. When you sell the lease, you’re essentially transferring its remaining payments to another person, who then assumes the lease for its duration. It’s important to remember that you must transfer the remainder of your payments and any applicable fees to the new lessee, lest you end up paying even more and losing some of your equity in the car.
Purchase the Vehicle Outright
Buying a car outright when your lease expires can be one of the most beneficial decisions you make. With a purchase, you’ll have the flexibility to make modifications to the car, keep it for as long as you want, and even resell it for more money in the future. Furthermore, if you decide to buy the vehicle at the end of your lease, you may be able to take advantage of promotional rates that dealerships offer. Before deciding on purchasing the vehicle, however, it’s important to make sure that you can afford its full cost and determine if it makes more financial sense than returning or selling the lease.
As your car lease reaches its expiration date, you face a few options. You can return the vehicle and start a new agreement, purchase it outright, or finance the acquisition. Carefully consider each possibility to identify which is most beneficial for yourself.
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