The buyout option at the end of a car lease can be an attractive opportunity or a tool for damage control.
The buyout price is set by the leasing company at the beginning of your contract. If you’re anticipating extra fees and penalties, buying the car can cut your losses. Or, if market conditions have changed since you signed the lease and you’ve lightly driven the car, you could turn the hidden value in your vehicle into real savings.
Now that you know the numbers, here are the times when you might want to stay with old faithful.
1. YOU’RE WAY OVER – OR UNDER – THE ALLOWED MILEAGE
Most lease contracts are for three years and 36,000 miles. It you’re over, you’ll owe money; if you’re under, you could leave money on the table.