You’re considering leasing a vehicle, but upon calculating the fees, monthly payment, and figuring out the total cost, you hesitate to enter the dealership.
Before leasing a vehicle, consider the option of buying out the vehicle, instead of just leading and returning the vehicle.
These situations are often called “ purchase options” or lease-to-own. If you see this at a dealership, look further into it.
Table of Contents
How It Works
Buying out a leased vehicle means making the monthly payments until you’ve paid the vehicle in full plus interest and leasing fees.
Some of the leasing fees you can expect to pay are:
- Acquisition fee – Acquisition fees are also known as administrative fees. You’re paying for the dealership to put together financial agreements. There is no set amount for this fee and could range from $100 to $1,000.
- Documentation fee – The documentation fee is relatively the same as an acquisition fee, however, unlike the acquisition fee, you can negotiate the documentation fee.
- Security deposit – Same as renting, the security deposit is due upon signing in the amount of your monthly payments.
Just like purchasing a vehicle, you’ll need to make a down payment on the vehicle you’re leasing.
What To Look For
Some important factors to look for when searching your options for a lease-to-own vehicle are:
Questions
Some important questions to consider before leasing a car to own are:
- What are the upfront costs besides a down payment and the first monthly payment?
- Does the vehicle qualify for a special deal?
- Does the vehicle have the equipment, extras, and add-ons you want?
- What about mileage? Does it suffice for your traveling needs? Is there a mileage limit when leasing? If so, what are the terms?
- What are the terms of the lease?
- How much can I afford to pay each month on a lease vehicle?
- Are you set on a specific make and model or are you open to other options?
If your heart is set on a certain make and model, research your options at different dealerships. For example, if you’re looking for a FORD raptor lease, search for that vehicle in your area with “special deal” at the end of your search.
Value
To know if you’re getting a fair deal, check the Kelley Blue Book value of the vehicle you wish to purchase before leasing it.
Financing
See if the option to finance is available.
Negotiation
You’re allowed to negotiate certain aspects of your lease with a dealership. Some of the things you can negotiate are mileage limit, terms of the lease, vehicle price, and financing price.