If your car lease is expiring in the coming months, it MAY have a buyout purchase option. This means you have an option to buy the car at a previously set price. This price was set based upon the predicted residual value of the car at the end of the lease when you entered into the contract. Check your lease to see if yours has a buyout. If it does, you may want to consider executing the buyout for a number of reasons.
- New cars are in short supply mostly due to chip shortages. As with anything in short supply, they are more expensive than usual. By buying or leasing a new car now you would be locking in a high price.
- The prices of used cars are way up due to the new car shortage.
- Your current leased vehicle may have lower mileage due to curtailed driving in the pandemic.
- The buyout price may be well below the current market value of the vehicle.
- By buying the car you avoid the damage inspection and assessments for often minor issues when a leased car gets turned in.