Is it ever a good idea to purchase your lease car?

[Tink3815]

I have a 2014 Subaru that will have less than 36,0000 miles when I turn in May 2017. The car is in excellent shape. Only drive to work and Sat shopping trips. One one has ever sat in the back seat. The buy out cost is what they are selling used similar Imprezas for.
Have always heard that it is a bad idea to buy out your lease, but I really like this car.

 

[lost*in*cyberspace]

I've always felt it is a bad idea to lease a car, so I can't help you!

 

[DisneyNutMary]

If you are under miles and the car is in great shape, then I wouldn't think of buying after the lease.
The only time I would consider buying is if I am over miles. My friend and my husband both leased cars and then got transferred at work far enough that they will be over miles at the end of the lease, so they are both planning to buy in the end. I'm going to cut it tight on miles, so I'll turn my lease in early to avoid over mile fees.

 

[Gorechick]

I bought my lease car. We took great care of it and knew the history and a good deal at the time as we were going to buy certified used anyway. Car lasted me about 12 years and then sold it to nephew and lasted him a few more years.

 

[piccolopat]

We bought both of the cars we leased. I calculated the cost of the cars if we had bought and financed versus the cost of the lease plus buy out cost. As long as the cost was comparable, and for us it was, we planned all along to buy the car at the end if we ended up loving it and the car was dependable. The first time we leased is because it was a different brand and we wanted to be sure we would like it. The second time we leased was because we were moving from a van to a crossover and wanted to be sure we would like the style. In both cases, our mileage was a lot under the lease limit and so we also felt we hadn't gotten our money's worth from the lease. Keeping the cars made sense for us.

 

[ronandannette]

I have a 2014 Subaru that will have less than 36,0000 miles when I turn in May 2017. The car is in excellent shape. Only drive to work and Sat shopping trips. One one has ever sat in the back seat. The buy out cost is what they are selling used similar Imprezas for.
Have always heard that it is a bad idea to buy out your lease, but I really like this car.

We bought both of the cars we leased. I calculated the cost of the cars if we had bought and financed versus the cost of the lease plus buy out cost. As long as the cost was comparable, and for us it was, we planned all along to buy the car at the end if we ended up loving it and the car was dependable. The first time we leased is because it was a different brand and we wanted to be sure we would like it. The second time we leased was because we were moving from a van to a crossover and wanted to be sure we would like the style. In both cases, our mileage was a lot under the lease limit and so we also felt we hadn't gotten our money's worth from the lease. Keeping the cars made sense for us.

OP - the math that matters is the overall amount of money you'll be putting into that particular vehicle. Add what you've already paid over the life of your lease together with the buy-out. If the total is close to the price of a NEW Imprenza, then yes, buy it out. If it's substantially more, you'll do better to simply buy a new one, unless you really were in the market for buying a used car when your lease terminates. I'd also consider whether or not you're looking to make a cash buy-out or finance the balance because if you finance, the vehicle may run out of warranty coverage long before it's paid for. This kind of thing matters to us - it's one of the reasons we lease in the first place.

 

[NinaBella]

We leased my car in Jan-2016 and plan to buy it at the end. If I don't buy it, I would buy another car (or a new lease) and I know I take care of my car.

 

[supersnoop]

Leasing is generally a bad idea, financially, but you're past that point. And sunk costs are irrelevant, so don't go calculating what you've already spent. It will be painful.

The real question is, would you buy that particular car for that price right now? Since you're low on the miles and it sounds very clean, the car is likely to be worth more that the but-out cost. You might even be able to buy it and sell it immediately for a profit.

If you would not buy the same car used for that price, turn it in and let the leading company deal with it. Don't keep the car just because you're emotionally attached to it. Make sure the deal makes sense.

 

[tvguy]

Leading is generally a bad idea, financially, but you're past that point. And sunk costs are irrelevant, so don't go calculating what you've already spent. It will be painful.

The real question is, would you buy that particular car for that price right now? Since you're low on the miles and it sounds very clean, the car is likely to be worth more that the but-out cost. You might even be able to buy it and sell it immediately for a profit.

If you would not buy the same car used for that price, turn it in and let the leading company deal with it. Don't keep the car just because you're emotionally attached to it. Make sure the deal makes sense.

I agree. If you like the car, and the price is good, buy it. You'll be much better off financially than leasing another car for sure.

 

[msmayor]

Years ago when we leased a Volvo station wagon we had every intention of buying it at the end of the lease on the day we signed the papers. We viewed the transaction as a 'reverse purchase'...we didn't have the downpayment for the car at the time but knew that we would have the cash at the end of the lease...the numbers worked even better for us.

Our buyout price at the end of the lease (6 yrs) was set the day we took possession of the car. Two months before the lease ended when we had to let the leasing company know what our intention was, we learned that the market value of our car was $3k greater than the buyout price. We happily paid it and kept the car another 6 years beyond that.

 

[piccolopat]

OP - the math that matters is the overall amount of money you'll be putting into that particular vehicle. Add what you've already paid over the life of your lease together with the buy-out. If the total is close to the price of a NEW Imprenza, then yes, buy it out. If it's substantially more, you'll do better to simply buy a new one, unless you really were in the market for buying a used car when your lease terminates. I'd also consider whether or not you're looking to make a cash buy-out or finance the balance because if you finance, the vehicle may run out of warranty coverage long before it's paid for. This kind of thing matters to us - it's one of the reasons we lease in the first place.

You make a valid point. During the time of our leases, we banked money each month so that if we decided to buy the cars at the end of the lease, we would pay cash and not have to finance it.

 

[smokeyblue]

Subaru's have the highest resale value of any vehicle. If I were you I would give back your leased car and buy a new Subaru. It would only be a marginally higher payment than keeping your used vehicle. Also being new, you should get better financing terms which could include 0% financing or more time to pay off which may make your payment the same or even less. You will also have the benefit of having a new car with a warranty. The other thing to consider is that you will be coming up on some maintenance in the next few years. Subaru parts are not cheap.

 

[tvguy]

The other thing to consider is that you will be coming up on some maintenance in the next few years. Subaru parts are not cheap.

My mechanic makes a lot of money on minor Subaru repairs because parts that most often need replacement are hidden and need a lot of time to get access too. He needed 3 hours ( at $90 an hour) to get to an $18 part of the emissions system because you have to drop the rear differential and fuel tank to get to it.