Buying Out Your Lease: Does It Make Sense?Jun 8th, 2017
You’ve been leasing your vehicle for 3 to 6 years and your lease is up. It’s proven to be a reliable car and you’re reluctant to let go of it, so you’re thinking about buying after leasing. However, there’s plenty to consider before you decide to buy your car.
The first step you need to take when you’re figuring out whether or not it’s a good idea to buy out your lease is finding out what your residual or purchase-option price is. That’s how much money you will have to pay to buyout your lease, as it represents the value of your car after several years of driving it. Your residual is not affected by changes in the market, i.e., how much people are willing to pay for a particular used vehicle. If you can buy the same pre owned Mazda for considerably less, you’re probably better off starting a new lease on a newer vehicle or buying straight off the bat.
#2 Mechanical Condition
Once you buy out your lease, typically you won’t be under warranty with the dealership any longer. Even if you haven’t had any mechanical issues lately or at all, take it to the mechanic for an inspection and repairs. When we take back a leased vehicle at Yorkdale Dufferin Mazda, we have it inspected and repaired before putting it back up for sale as a certified pre owned vehicle.
#3 Buy It from the Start
Financing plays a big part in the total cost of a car, which includes more than just the sticker price. When you lease a car, you’re not paying off principal; you have to take out a loan after several years of driving it. When you put a down payment on a lease, what you’re doing is putting money up front to reduce the size of your monthly payments, which essentially pays for the depreciation of the vehicle while you’re driving it. You should also compare what kind of incentives you can get from the dealer for purchasing over leasing; whereas you can get a Mazda CX5 in Toronto from us with $800 off the MSRP, as part of our monthly specials, we’re also leasing 2017 Mazda CX3s from $99 bi-weekly at $1.49% APR for 60 weeks.
If you’ve gone over the mileage specified in your lease, buying it out may can be the smartest option, otherwise you will have to pay up for going over mileage, without any of that money going toward the next car you’re going to drive. Rather than pay for excess mileage, the Yorkdale Dufferin Mazda team recommends talking to us about buying out your lease.
Remember, our goal is to make sure you leave the lot with the choice that makes the most sense for you, including financing, leasing, buying, and buyouts. That’s how we convince so many drivers to make us their Mazda dealership in Toronto. We want our customers at Yorkdale Dufferin Mazda to be customers for life and that means looking out for their needs. Come talk to us if you’re not sure what you should do at the end of your lease and we can find the best solution for your wallet and your driving needs.