Lease Ending Soon? Read This Now
The pandemic and economic shutdown has resulted in so many unpredictable outcomes, one being that used car prices have shot up to record levels. Many used cars are now worth much more than they were before the pandemic began. Demand is so high for some models, dealers are paying closer to retail price rather than wholesale price at dealer auctions.
Whenever market conditions become whacky like this, I try to highlight opportunities where you might be able to take advantage of the situation. In this case, there's an opportunity to profit for those who are currently in a lease that's close to ending.
Normally, at the end of a lease, you turn the vehicle in and pay a small disposition fee. However, you also have the choice of purchasing the vehicle at the buyout price stipulated in your lease agreement. This buyout price is determined at the beginning of your lease, based on historical depreciation rates. It is very likely that the predicted values are off by a lot, which could mean that the buyout price for your vehicle is way lower than what the vehicle is worth in the marketplace.
This means there could be an opportunity to buyout your vehicle and immedietely turn around and sell it at a profit. I've seen instances where people have made upwards of $3,000 using this strategy.
This only works in States that allow you to purchase and sell a vehicle without incurring taxes if done within a specific period of time - usually 10 days or less.
If you're currently in this situation and would like to learn more, I have an article titled How to Profit From an End of Lease Buyout that goes into more detail.
My Recommendation for Car ShoppersTrueCar No-Haggle, CarsDirect, and Ryde Shopper are the quickest way to see the lowest car prices in your area. These sites show you no-haggle prices from dealers closest to you - and the deals are usually really good. This should be the first step you take when negotiating your car price. Follow this up with my checklist to make sure you squeeze out every last bit of savings.
- Gregg Fidan
Each week, I'll keep you up-to-date on the latest car deals and news that might affect your purchase. This includes...
- Best Rebates, Incentives, and Lease Deals
- Latest Car Buying Scams and Tricks
- The Best & Worst Time to Buy a Car
- Which Cars You Should Avoid