Obtain a automobile at the end of your lease

You’ve come to the end of your lease and you like you vehicle enough you want
to keep it in the driveway. Just like obtaining a used vehicle, there is some
research to be done to nail a good deal.

First, you have to to know the cost of getting out your agreement. Read the fine
print of your contract and look for the “purchase option price”. This
price is set by the leasing company and usually comprises the residual
assessment of the car at the end of the contract plus a purchase-option fee
ranging from 0 to 0. When you signed on the dotted line, your
monthly payments were calculated as the difference between the automobile’s
sticker price and its estimated assessment at the end of the lease, plus a
monthly financing fee. This estimated price of the car significance at the end
of the lease is what is termed in leasing jargon “residual worth”. It is
the expected depreciation – or loss in price – of the auto-vehicle over the
scheduled-contract period.  For example, a car with a sticker price of
,000 and a 50% residual percentage will have an estimated ,000
worth at agreement end.

Now that you know the cost of getting out your agreement, you have to to determine
the actual value, also termed “market assessment”, of your vehicle.  So, how
much does your car retail for in the market? To pin down a good, solid
estimate you have to to do some pricing research. Check the price of the
vehicle, with similar mileage and condition, with different dealers. Use
online pricing websites, such as cars.com, Edmunds.com and Kelly Blue Book
for detailed pricing information. Gleaning pricing information from various
sources should give you a fair estimate of your auto-vehicle’s retail significance.

All you have to do now is compare the two amounts. If the residual price is
lower than the actual retail value, than you’re into a winner.
Unfortunately, there is a good chance a vehicle coming off a lease is a little
on the high side.
Don’t despair though. leasing companies know as much that residual values
on their vehicles are greater than their market value and as such are
always on the look out for offers. You can knock down on the price of your
leased vehicle with some smooth negotiating tactics. Put forward a price
that is below your actual target and negotiate hard until you wind up near
that figure.