-
Archives
- February 2019
- January 2019
- December 2018
- November 2018
- October 2018
- September 2018
- August 2018
- July 2018
- June 2018
- May 2018
- April 2018
- March 2018
- February 2018
- January 2018
- December 2017
- November 2017
- October 2017
- September 2017
- August 2017
- July 2017
- June 2017
- May 2017
- April 2017
- March 2017
- February 2017
- January 2017
- December 2016
- November 2016
- October 2016
- September 2016
- August 2016
- July 2016
- June 2016
- May 2016
- April 2016
- March 2016
- February 2016
- January 2016
- December 2015
- November 2015
- October 2015
- September 2015
- August 2015
- July 2015
- June 2015
- May 2015
- April 2015
- March 2015
- February 2015
- January 2015
- December 2014
- November 2014
- October 2014
- August 2014
- July 2014
- June 2014
- May 2014
- April 2014
- February 2014
- January 2014
- November 2013
- October 2013
- September 2013
- June 2013
- April 2013
- March 2013
- February 2013
- January 2013
- November 2012
- October 2012
- September 2012
- August 2012
- July 2012
- June 2012
- May 2012
- April 2012
- October 2011
- September 2011
Archive for January, 2014
People who lease cars tend to enjoy the benefits of low anxiety levels and low monthly payments. When the lease ends, you can turn in the lightly used vehicle and pick up a new one. But according to Edmunds, used-car prices have been driven up by low inventories on new cars and credit concerns, which reduces the number of new-car buyers eligible for loans and drives up demand for used cars.
As a result, some leased vehicles are now worth more than the residual value written into the contract when the vehicles were leased several years ago. Dealers generally do a good job estimating what a vehicle will be worth when the lease expires two, three or four years later, but sometimes unanticipated factors drive actual prices higher or lower than the estimates.
The typical lease contract gives the customer the right to buy the vehicle at the residual value. If the actual value is higher, the customer can profit in three ways.
Selling to a dealer.
First, you can exercise your option to buy the vehicle at the price specified in the contract, then sell it to your dealer, or a Tucson Acura dealer, for the higher market price. Selling to a dealer will fetch a wholesale price, typically the same as the trade-in value. You might get a slightly higher retail price by selling directly to another individual.
Buy the leased car
If you choose to buy the car that you leased, you can turn it in on a new purchase or lease. This allows you to turn the unexpected equity into a down payment. The key thing you want to track down is the actual value of your leased vehicle. You also want to find out how much a dealer would pay to buy the car at an auction.
Sell Privately
The third option is a “lease buyout transfer,” a process for selling your vehicle to someone else, typically someone which whom you share some trust. Your buyer mails a check for the buyout amount to the leasing company. When you receive the title, you turn it over to your buyer.
It is important to remember that you don’t necessarily have to wait until the lease is ending. You can exercise your option to buy at any time. If your lease has some time to go, you’ll have to ask the leasing company about the buyout price. For more information, visit Chapman Acura in Tucson.