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Generally, at the end of a lease, most folks turn in their car and look to either lease a new car or purchase a car. However, COVID and recent economic events have changed this from being a no-brainer…
Even though used-car prices are off recent highs, prices have still soared from a few years ago when you may have signed your car lease. The result? You may be able to buyout your vehicle from the dealer at the predetermined price at lease signing, and at a price much lower than current market value.
The 2022 average trade-in value for 2019 vehicles is 33% higher than the lease predetermined residual value (according to Edmunds.com). This means, on average, car lease buyouts are worth $7,208 by simply purchasing the car and reselling to the dealer.
This market dynamic is providing more options for folks when their lease ends. And in some cases, it might even make sense to buyout the lease early, before the lease term ends, in order to take advantage of the current used car market.
So while this article subject says not to turn in your leased car, every situation should be assessed individually. We just wanted to bring up the idea so you don’t go on autopilot turning in your lease and possibly losing out on thousands of dollars in benefit!