Should You Buy Your Leased Car
Posted by: Dan on 28/02/2017
When it comes time to buy your next car, you’ll be faced with many decisions. Do you want a new car or a used car? These are usually the two main options people ponder, but oftentimes a third option exists that is overlooked: the option of leasing.
Leasing can be a great way to acquire a new car without a huge monthly payment, and can offer the flexibility to change cars easily once the agreement expires. It's no surprise that in many nations around the world, leasing has grown in popularity, with the rate of leasing in the U.S. seeing jumps as high as 29% in just a couple of months.
However, once the lease is over, you’re faced with yet another decision: should you turn the car in and lease or buy another? Or should you buy your leased vehicle at the end of the lease period? Either option has its advantages and disadvantages. Here are 5 reasons you should buy your leased car – and 5 reasons you shouldn’t.
Have you been counting down the days ‘til the end of the lease? Do you look at other cars (even if they are newer and have more features) and feel that they won’t have the same appeal as your current vehicle? If so, odds are good you’ve found your perfect car for now. Buy it.
Now and then, you’ll find that certain vehicles are very popular, and can be hard to find - especially with the features you want, and in the colour you love. If you’ve leased a vehicle that has everything you want, and are finding that newer versions are either hard to find or increasingly more expensive, then buying the one you have can be a wise idea.
If you don’t like the initial price to purchase at the end of the lease, but the lessor signifies it is somewhat flexible, consider taking the time to really get into the negotiation process. Explain that you’ve had this car for a while and that you like it – but you don’t need it. Then negotiate down to a price that is agreeable to you.
If this is a car you’d happily own because it's so drama-free, go ahead and make it official. Although all cars need repairs now and then – and ongoing maintenance is vital to avoiding major repairs – if your car is a vehicle version of the Energiser battery, then be sure to buy it and make it your own.
If you’ve built up a good working relationship with the dealership you’ve leased from and found that their service is always good, then purchasing your vehicle can pay huge dividends long-term. Not only do you get a car you like today, but when it comes time to lease and buy a vehicle in future, you’ll know where to go for excellent service.
Even if you’re being offered a really tremendous deal on a purchase at the end of the lease, if you don’t really like the car that much, it’s not a good deal. If, instead of enjoying your driving in your leased car, you’ve been daydreaming about a different make or model that you’d like to have some day, go ahead and get that one instead.
Got an end-of-lease offer that is less a steal and more a stonewall? Go ahead and refuse it.
Generally speaking, once a car has reached the end of a lease, it is in the lessor’s best interest to sell it (as by that time, it’s older and liable for replacement with a more modern vehicle). If the price is not right, be ready to walk away.
While leasing a car can have some unique aspects in terms of repair and warranty, nonetheless, once you are the owner, all repair and ongoing maintenance costs are yours. If you’ve found that the car you’ve leased is in the mechanic’s shop more than it’s in your garage, it's time to wave goodbye and seek out a new vehicle once the lease ends.
If you’ve leased a car and found the service afterward to be poor, it's time to say goodbye to the car and the lessor. A good lessor will go to great lengths to ensure their clients are happy with every element of the arrangement. If you’ve found that since acquiring the lease, there’s been a “take it or leave it” attitude from the lessor, that’s a sign that it’s time to return the car and start fresh elsewhere.
Even if you like the car and the price is good, it's still possible the car is too outdated for your liking. While most leases last just a small period of a car’s overall lifespan and use, if you’ve been longing for a new vehicle – maybe even an electric model to supercharge your driving – then a car from even just a few years ago may not suit your needs. Refuse the offer to buy accordingly.
Car buyers face many questions when shopping for vehicles: whether to buy a manual or an automatic; how many cylinders the engine should have; what colour the car should be; whether to buy a 2-door or a 4-door, a sedan or a 4WD. There are a multitude of questions that come with buying a new car.
But by leasing, you have the opportunity to find a car you like, drive it for an extended period of time, and if you decide you really like it, you have the option to buy it. If you’re a driver who likes to take your time before deciding whether or not a car is truly right for you, a lease-turned-purchase can be a great option when it comes time to get a new car.
What others tips do you have for deciding whether or not to buy a leased car? Let us know in the comments below: