What Happens After a Lease Is Up on a Car?
Table of Contents
Key Takeaways
- It’s your choice to return the vehicle or buy your lease
- You can start another lease with a newer vehicle when your lease ends
- Consider asking to extend your lease if you aren’t ready to decide
What Are Your Options at the End of a Lease?
If you are approaching the end of your lease or are simply looking to learn more about the leasing process, you’ll likely have questions about what happens when the lease is over. Leasing is a great way to ensure your car payments remain low and your vehicle stays current, yet knowing what to do when your lease is up can sometimes feel like a tough decision.
At Team Chrysler, we are the Ram, Chrysler, Dodge, and Jeep dealership Mississauga residents turn to when looking for the best selection of Ram, Jeep, Chrysler and Dodge vehicles for lease. In this post, we cover the pros and cons of returning or buying out a lease to help you feel informed and ready to make a decision.
When a lease ends, drivers will need to decide between returning the lease or buying out the vehicle. Both options have pros and cons, and it is ultimately up to you to decide which is right for you. If you are looking to change vehicles, returning your lease will likely be your best option. However, buying out a vehicle after a lease can be a smart choice if you like your vehicle and have a good buyout price.
Leasing is a great way to drive a vehicle you love at an affordable and predictable price. Contact a member of our team for more information on leasing a new Jeep Grand Cherokee or new Ram 1500 for sale within our inventory.
Financing Pros and Cons
| Pros | Cons |
|---|---|
| You can upgrade to a vehicle that better suits your current lifestyle needs | Financing a new or pre-owned vehicle may be more costly than the buyout amount of your lease |
| You can return your lease and lease another, newer vehicle | If your buyout amount is less than the current market value, you could be missing out on a good deal |
| You can get a new lease or buy a new vehicle with a full warranty |
Pros and Cons of Buying a Lease
| Pros | Cons |
|---|---|
| The cost of buying out your lease could be lower than buying the same vehicle outside of the lease | Your vehicle may no longer be under warranty |
| You’ll continue to drive the car you already know and love | If your buyout amount is high, it might not be a good price |
| The chances of being underwater on a car loan will be lower | You could miss an opportunity to upgrade to newer features |
Frequently Asked Questions
Is There a Fee for Buying Out a Lease?
If you are looking to buy your car at the end of a lease, you might be surprised to learn that many car dealerships charge a fee to do this. Though this fee will typically be outlined in your lease contract, it is something that can be easy to forget. Keep any fees or extra costs in mind, and know that even when returning a lease, you can likely expect to pay fees.
What Will It Cost to Buy Out My Lease?
When you first sign a lease contract, the cost of buying the lease out at the end of the term will be clear. The amount you pay is based on the residual value of the car. In some cases, your buyout amount will be less than market value, while in other cases, it end up costing you more. You can look at your lease contract to see the cost of buying out your lease and compare it to what cars similar to yours are selling for.
Conclusion
When your lease is up, you can choose to return the car or buy it. Determining which option is best for you will typically come down to personal preference. Your lease ending is a great time to consider moving to a newer vehicle that better suits your needs. Though do keep in mind that buying out your lease can be a great way to save money if your buyout price is lower than market value.
Hadeel Hijazieh – VP Digital Marketing at Ontario Chrysler Group
Hadeel has over 15 years experience in Automotive Digital Marketing with a focus on Brand dominance. She is a member of the dealer council at various leading marketplaces in Canada. Outside of work, Hadeel can be found splashing acrylic paint over canvas in her home studio.
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