How to buy a care after leasing and why it is better than buying usual used car?
Two or three years of car rental have passed and you have two options: buy a car after leasing or find a new one. You may be inclined to one of them depending on how much time you have, how much you like the means of transportation, but it is important to consider several factors that will determine your decision. There are not so many models on the market that can be purchased after leasing, but the demand is increasing, so leasing companies are expanding. Many customers purchasing car after leasing are satisfied.
When you are considering buying a car after lease, you have a significant advantage. You know the price at which the leasing company is ready to give the car and all the specifications of such car. And this is a great opportunity that you would not get when buying a new car or while buying car from private person.
Your rental agreement contains the residual value or depreciation value of the car at the end of the rental period. This is also the price for which you could purchase it.
However, you should not consider the price of redemption separately. It is necessary to study the actual cost of the same car on the market. Estimated cost of different cars may vary. If the residual value under the lease agreement is close to the market value of the rented car, then the purchase is an excellent option. Moreover, one of the advantages of buying a rented car is that the market value of the car can be much higher than the residual value. And this will also be a good reason for purchasing from leasing company, because it is unlikely that you will find the price even lower.
The condition of the leased vehicle can also affect whether it should be redeemed after the expiration of the contract or not. Well, if your rented car is in excellent condition. It is unlikely that you would find another used car for the same price. If you have kept the vehicle in good condition and still like it, you should consider purchasing it.
On the other hand, if your car is not in the best condition or you have damaged it during the rental period, the leasing company may impose a fine when the rental period comes to an end. In this case, the purchase option should also be considered to avoid penalties.
Mileage is also an important factor when buying a car after the expiration of the lease term. The leasing company usually calculates the residual value based on mileage. This is immediately negotiated when drawing up the contract. And if you exceed the mileage limit, you will have to pay for every extra kilometer. It is worth checking the prescribed kilometers in the contract and the kilometers that the odometer displays. If you have significantly exceeded the mileage limit, then it is worth buying a car to avoid additional charges.
Finding a new car, drawing up a contract and buying takes a lot of time and effort. And this may be another reason to buy a car after leasing. If buying a car brings too much trouble and you are satisfied with the rented vehicle, you should think about buying it back. So you can save a lot of time and effort. In this case, most of the problems with the paperwork for the car lies with the leasing company.
When buying a new car, all worries about maintenance and service fall on the shoulders of the buyer. In contrast to the lease of the vehicle, where all the technical issues followed by the lessor. Vehicle inspections are carried out on a strict schedule as recommended by the car manufacturer. Unlike a used car that belonged to a private person, you can be sure that the vehicle taken from the leasing company meets all standards. In the car, oil and tires were changed on time and returned to the leasing campaign on a schedule.
Cars that are rented, gaining mileage much faster than those who buy in car dealerships. But do not expect that on the odometer will be accumulated many kilometers immediately. Usually, at the time of a large mileage, cars do not remain in the leasing campaign.
Ability to select a new model
No one wants to rent an old car model, so leasing campaigns usually take care of the availability of the latest models throughout the year. Regardless of whether the car model of the current or previous year, despite the mileage and style, cars are equipped with the latest technology.
Buying a car after leasing helps to save money. Buying a new car means depreciating it at the moment you leave on it. With a rented car this will not happen. You can get the same car from a leasing company, but at a price much lower than the one that corresponds to its real value.
In addition, the residual value can always be discussed and revised at the end of the lease term. In most cases, the price will be much lower than on the purchase of a new car of the same model and characteristics. But if you are considering the option of early redemption, then you should not expect the leasing company to make concessions.
In addition to the residual value, depreciation of the car for the rental period should also be taken into account. It is fully owned by the lessee. Depending on how much the car has depreciated, the total amount for its purchase will be much lower than when buying a new one.
As a rule, each leasing company sets its own rules and the set of documents may differ. But the main ones are: