With used car prices rising dramatically during recent supply shortages, many drivers found themselves in an unusual position when their leases ended: the option to buy the vehicle for less than its current market value.
That was the situation presented to Darren Zagarola, CFP®, CPA/PFS, in a recent NJMoneyHelp article. The reader planned to purchase a leased 2019 Honda CR-V at the end of the lease term and wanted to know whether it made more sense to work through the dealership or deal directly with the leasing company.
In his response, Darren explains why the current market conditions at the time made lease buyouts particularly attractive. He notes that lease agreements include a residual value, which is the predetermined price at which the lessee can purchase the vehicle at the end of the lease. Because that value is established when the lease is signed, it cannot be changed later.
Darren recommends contacting the financing company directly to confirm the residual value and begin the purchase process. He explains that going through the dealership may result in additional fees for the dealer’s time and effort, while working directly with the financing company may help avoid those costs.
You can read Darren’s complete response in the original NJMoneyHelp article: We’re Buying Out Our Lease. What’s the Best Way to Go?
