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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.

 






3 Steps Every Car Buyer Needs to Take to Save Maximum Money

The key to getting the best deal is to gather price or lease bids from as many local dealers as possible. Then shop that best price around until no one can beat it. Here are the steps:

Step 1 Get Prices From My Trusted Network

Select the vehicle you're interested in to see if there are local dealers in my network who will provide you with their best upfront price. You will get direct access to an internet sales manager who you can further negotiate with online (no need to visit dealership).
Select Vehicle to Get Local Pricing

Step 2 Get Prices From TrueCar / CarsDirect

TrueCar, and CarsDirect are my top 2 online price quote recommendations. These services show you pre-negotiated prices from dealers closest to you - and the deals are usually pretty decent. But remember, you can still negotiate further.

Step 3 Complete my Checklist

Follow this up with my checklist to make sure you squeeze out every last bit of savings.
- Gregg Fidan

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About The Author

Gregg Fidan Gregg Fidan is the founder of RealCarTips. After being ripped off on his first car purchase, he devoted several years to figuring out the best ways to avoid scams and negotiate the best car deals. He has written hundreds of articles on the subject of car buying and taught thousands of car shoppers how to get the best deals.

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