I’m thinking about getting a leased car but I owe on my current car loan. How do I get a good deal on a lease? What are residuals? What are buy backs? How do you buy your car once the lease is over if you don’t give it back? I’ve only ever bought cars and never leased because I don’t know how they work and not get ripped off. I’ve Googled but I still don’t get it.
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I lease so feel free to ask me questions. You can get a good deal on a lease if:
* you put down more as a down payment (do that math)
* you have excellent credit
* you have an existing relationship with the dealership
* you catch on their major holiday sales
* you play hardball and are willing to walk away
> What are residuals?
So you’re basically renting a brand new car. If the car costs $10k and after your lease the car has a buyout value of $6k then $6k is your residual – i.e. the *residual* value left of the car when your lease is over.
> What are buy backs?
The dealership can end your lease early and “buy back” the amount left on your lease. This is good for them in case your car is in great condition with fewer miles. Plus they make more money from you if you get another lease.
> How do you buy your car once the lease is over if you don’t give it back?
It’s written into your contract and the buy price is part of that contract. You just tell them that you want to buy the car and I’d do it 3-6 months before your lease expires and that’s it.
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