Is It A Sound Idea To Buy Your Car At The Conclusion Of The Lease Agreement?


It is the dream of everyone to own a car. But for those who can not afford to lay out thousands of dollars at a single sitting to a dealer, lease a car agreements are a possible and plausible option. But all those people who enter into such terms often find themselves begging the question near the end of their agreement whether it is not worth buying out their vehicle at the end of the time period. It would, after all, answer their dreams. It also grants them a new freedom which they will never have before experienced with that particular item.

So long as a car is leased, rather than bought, people are always concerned about keeping good care of the vehicle. They must, after all, be responsible for the short term rent of an item from a company which wants it back eventually. People often forgo going to fast food drive throughs because they are worried about leaving a smell in their temporarily hired vehicle. Likewise, they will often drive extremely slowly and carefully so as not to damage the item in any manner, which could cost them dearly when the vehicle leasing company inspects it.

Therefore there is an advantage in owning such a thing. If someone wants to eat fast food which will leave an odor in the leather, they can. If they want to drive the car heavily on the brakes, they can do so with impunity. A person’s personal possessions can be treated with less care than someone else’s possession on loan.

It would therefore follow, logically, that buying when first given the opportunity is the smart choice. But not necessarily so. For example, if a driver only makes a few trips every week, then it may work out cheaper in the long run to remain in rental.

If this is the case, staying in the lease contract may prove more useful. But if the converse statement is correct, buying rather than continuing to rent may be smart. This is good in many ways.

The leasing companies do not design their contracts to lose money. They specifically set them up so that a person has to pay more than the cost of the actual car as new to purchase over a long time period. For that reason, it would make sense at a certain point on the lease contract to move from renting to buying, if a person is a heavy user.

Contracts such as these are useful for short term usages. However, as soon as it becomes a long term investment, it is a better deal to buy than to try and loan. The first opportunity that comes up to make the purchase permanent should be seized with both hands.

Car lease contracts can prove very useful for people who do not use vehicles that often. But as soon as it becomes the norm that a person is using their vehicle regularly, it is vitally important they move away from their renting terms and into a stronger purchasing position. If they do not, they risk being charged punitive amounts for a car which is never truly within their ownership.

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