The age-old question of whether you should lease or buy your car has been around for years. And until recently, if you wanted a brand-new vehicle with affordable payments, the answer was to lease a car. Now with a worldwide chip shortage, prices have skyrocketed and the cost to buyout a lease in some cases is worth it.
Buying out your lease might be the smartest financial move you make this year, and here’s why we think it could help you save money in the long run.
The Buyout Price
When you lease a car, a buyout price is also agreed upon and placed in the contract. Leases that are expiring now had this price set pre-pandemic and before any current chip shortages. That means the buyout price is favorable, and most lease companies don’t want you to buyout. They want you to return the car to them so they can sell them for a high price than what you owe if you buy it out. The best deal you can find for your next car might already be sitting in your driveway.
As mentioned before, there is a worldwide chip shortage. Cars need these chips to operate. Unlike the days of the past when everything used mechanical parts, many vehicles now run and operate using computer parts and chips. With these chips being in short supply, the cost to purchase or even lease a new car has shot way up.
Sell Your Car
Perhaps you’ve been waiting for your lease to expire because you’re ready for a change. But, buying it out and reselling it yourself could turn a profit. With the lower agreed-upon buyout price you already have in your contract, you could turn around and sell it to someone else or even a dealership for more and make a couple hundred, if not a thousand-dollar profit depending on the car. Make sure you do your research ahead of time and find out the car’s value.
Astera is happy to help with whatever your auto loan needs may be, and we even offer cash back when you bring your lease to Astera to buyout. Contact us today at 800.323.0048, or visit us online at asteracu.com to learn more.