Yes, it can be a good idea to buy a car that was leased, especially if you were the one who leased it. Here are five good reasons to buy the car that you previously leased.
Price Could Be Less Than Market Value
Leasing companies use a term called the residual value to estimate what a car will be worth at the end of the lease. Obviously, prognostication is not an exact science. Residual value can affect the price of a car after the lease in two ways: if the residual value is set too high, the monthly payments are lower than they should be, so the sale price will be above market value. If it is set too low, you can buy the car for less than it’s worth because you paid too much during the lease. Lastly, a leasing company is required to sell vehicles directly to a dealer or through an auction. This is a hassle, so they may negotiate a relatively low buyout price with you to avoid that hassle and expense.
You Know Its Maintenance Record
You know exactly how the vehicle has been maintained. You also know how it has been driven, where its been driven, and who has driven it. If you have done everything right, then you know you will be getting a great car. On the other hand, if you habitually miss oil changes and scheduled maintenance, then it is best to leave the car at the dealership and move on to the next vehicle.
It can be difficult to only drive between 10,000 and 12,000 miles per year. In most instances, excess miles will cost you 25 cents per mile. That can be a nasty surprise at the end of your lease; however, those excess mileage fees are generally waived when you purchase the vehicle.
Shopping for a car is a huge pain in the neck. Visit to dealership after dealership, salesperson after salesperson and the brow-beating to get a sale done. All of that will be avoided by buying the car you were leasing. All you may have to face is a small amount of haggling for the best price and waiting for the financing to go through.