Should I buy my leased car?

Question

I have had my Honda CR-V for 3 years and my lease is about up. There's only 20,000 miles on it and is in good shape. Is it a good deal to purchase it at this point? How does that work? What amount do they base the purchase on now? Also, how long can I pay on it if I do purchase it? TIA!!

Answer 1

Ok here's what you do.

Do a little research on edmunds.com(or car auction sites) to find out about the current market value of your honda CR-V lease.(in similar condition and milage) Say it is 17,000...then compare this number with your lease buyout price.  If your lease buyout price is much lower than the current market price then yes buy it.  Then you can sell it and make the profit. Sounds good to me :)

Tony

Answer 2

You should have a guaranteeed purchase price (also known as a residual value) in the contract.  That is what you need to give Honda for the CR-V.  This price is not negotiable - if you want the car that is what you must pay.  You probably could finance it with the same company that holds your lease.  Call and ask them about it.  You could also get a loan from a bank or credit union.  They will be able to tell you the terms (rate and length and payment).  You should be able to finance a 3 year old vehicle for up to 60 months.

Answer 3

I'm not an expert but I think you can just pay them the residual and you will own the car.  Some banks and dealers will finance the lease or for the the residual amount.  Do tour legwork up front so you can be in control.  Arrange the loan through your bank or credit union.  It would be an excellent purchase if you have taken care of it.  Good Luck.

Answer 4

The buy out price should have been included in the original contract. Most used car loans wont exceed 48 months and you can get lower rates if you make it for a shorter term but your payments will be higher. Its hard to say if you should buy it, but one thing is you know exactly what your getting. Getting into a new lease will give you a nice new car but you will have the same decisions to make in 3 to 4 years.  

Answer 5

alot of times that is the car companies objective is for you to buy your car after your lease is up. the cool thing about it is that you can get your car paid off for a decent price typically or if they dont give you a good buy price then you can get into something new. That is teh main reason why people lease is to get the new model in 3 years when thier lease is up. I have a couple friends who bought thier leased cars because they got a good deal on it. If it makes sense and you enjoy your car.. buy it! if not you can get something new and shiny!!