If we’re honest with each other, and we always should be, there’s a reason that leasing instead of buying a car seems like such a rockin’ good deal. You get a nice, new car to drive every three years or so with minimal costs for upkeep, and the dealer gets all that sweet, sweet cash. Everybody’s happy.
Then the lease agreement ends, you turn in the car, and, hey, what’s that? ANOTHER nice, new car for ANOTHER three years!? #WINNING
For some of us, leasing a new car or truck seems like the perfect solution at a fair price. It’s especially handy if a short-term commitment fits into your long-term plans, and you want to sidestep some of the busy-work when it comes to repairs, maintenance, or finding a new owner when you’re ready to trade up.
But, hey, listen, it’s also no secret that the Simplicity CU Team LOVES to do loans. (Well, we love to get people the money they need, when they need it. Writing loans is just one way we do that.) SO let’s talk about some reasons you might decide to buy out that lease (with a loan from Simplicity CU) when the time comes.
1. You might owe more money than you think.
While lease agreements can vary, things like exceeding the maximum mileage or excessive wear and tear can add up. They’ll mean extra cash out of your pocket to satisfy the terms of your lease when it’s all said and done.
There is always a chance that you’ll avoid this extra expense (consider wrapping your car in bubble wrap when you’re not driving it.. or not driving it at all, we guess). But the dealership is hoping to make top dollar on the next person to drive your car, and they’ll make sure you pay for anything that might hurt their bottom line.
And speaking of top dollar…
2. You might be leaving cash in the glovebox.
Not literally.. well, maybe literally, but also figuratively. The terms of a lease agreement are set upfront, so you’ll pay for how much you use the car. (We know, that’s only common sense, but keep reading.) What some of us DON’T consider is what happens if you use it less than you expected.
If you put LESS miles on your leased vehicle than the contract allows, you’re probably not getting that money back. (Maybe, just maybe, if you’re a super good negotiator, but we don’t suggest holding your breath.)
Not only do your monthly lease payments – as affordable as they are – get you no closer to actually owning it, you could be overpaying, sometimes by a lot.
It’s fair to point out one more time that, under the right conditions, leasing is a great option. There’s one more condition to think about, though…
3. You might love your car.
We know there are people out there, maybe you’re one of them, who see a car as a tool. Their primary focus is to get the right tool for the job and emotions never enter into it. Those are awesome people and probably save themselves a lot of sleepless nights.
On the other hand, there are people who name their cars things like ‘Betsy Rose’ or ‘The Blue Bomber,’ and their relationship with their car is a little more… intense.
Ok, we can’t all fall in love with every car we drive, but sometimes, just sometimes, we find The One. You’ll know it when you do.
How are you going to look Betsy Rose in the headlights and tell her that it’s over?
You don’t have to! Even if your car doesn’t have a name (yet), if it’s exactly right for you right now, you love its features or its style, it fits who you are and where you’re going, buying out your lease could be the best next step.
And it’s WAY easier than you think.
First, check your lease agreement (or give the lessor a call) and make sure the terms allow for a cash buyout (they usually do). As long as you’re doing some homework, take a look at those terms and make sure you understand any fine print. You don’t want surprise fees to keep you from your happily-ever-after.
Next, click that big green button below to take you straight to our online loan application. Once you submit it, our lending gurus will get to work on the best loan option to save you money and keep you in the ride you love.Click Here to Apply Online Right Now!