It is time for you to turn your rented car back to the dealer. However, you're fond of this vehicle and would like to keep it for many more years. You can do that if you buy the lease out as per the terms of your lease agreement contract. Read on for some tips on how to reduce your lease buyout amount to keep more money in your pocket.
1. Review your lease agreement. Pull out your lease agreement and turn to the section that gives the vehicle's residual value. That amount plus related fees is what you can pay to buy the car following the end of the lease term.
2. Inspect your car. Your vehicle may be worth more or less than the residual amount. Several factors including model popularity, mileage on odometer and overall condition can alter your car's value.
3. Visit KBB. Kelley Blue Book offers information about your specific make / model car based on a number of factors. Those factors including trim level, condition, mileage and your location will determine its price. Compare the value set by KBB to your car's residual value.
4. Contact your leasing company. Just before your lease is set to expire, contact your leasing company and make an offer for your car. You do not have to reveal that you visited KBB to get your information. The leasing company can reject your offer or counter with an offer of its own.
5. Determine a price limit and stick to it. You know your car's condition, its popularity and what it is worth. You need to set a price in mind that you will not go over to pay for it. As you continue negotiating, keep focused on your top dollar amount. If the leasing company makes an offer that falls within that amount, then go with it. If not, then return your car at the end of lease term.
6. Arrange financing. If you successfully negotiate a buyout amount, then contact your bank or credit union to arrange financing or pay cash for your car if you can. At closing, you'll present a check to the leasing company to seal the deal.
Lease residual values are typically inflated. You can usually get a lower price, but keep in mind that certain fees may still apply. You'll also need to pay registration fees to the DMV and a sales tax, if applicable, to your state.