Choosing to lease a car can offer the best of both worlds—a brand new vehicle without the commitment of a long-term loan. However, if you’re approaching the end of your car lease, you may need to act quickly to avoid losing your main mode of transportation. Luckily, there are many end-of-lease options that can help you plan your next steps after your vehicle lease ends
Review Your Options
When it comes to your vehicle, most people have three end-of-lease options to choose from: return the vehicle, purchase a new one, or renew your vehicle lease.
Return the Vehicle
Allowing your vehicle lease to expire and leasing a new one is a great opportunity for a fresh start, allowing you to upgrade to a brand-new car while keeping vehicle costs low. However, returning a car may incur some associated costs. For example, if you’ve exceeded your lease’s maximum milage or your vehicle has suffered damage, you may have to pay fees or penalties to repair the damage.
Renew Your Vehicle Lease
If you’re happy with your car, most vehicle leases can be bought out, allowing you to own the car outright. Purchasing the car also means you avoid the sometimes tedious and exhausting process of finding a new vehicle. For those who want to keep their current vehicle, a lease buyout can be an attractive end-of-lease option.
Buying out your vehicle lease does come at a cost, usually equal to the remaining value of your leased vehicle. Sometimes lease agreements will include end-of-lease fees and taxes, so check your agreement thoroughly before making a final decision.
Get Started with Gravity Lending
When preparing next steps after your lease ends, keep your individual financial situation in mind. Review your credit score and consider its impact on your potential to lease or purchase. Think about budgeting for a down payment or future payments on a new lease.
At Gravity Lending, we can help you plan ahead and explore next steps after your lease ends. We’ll work with you to assess the long-term costs and, ultimately, to determine which car lease option can best help you reach your long-term financial goals.
Contact us to get started today!