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My lease is up on my 2007 scion tc on Oct. 21. I am over in my mileage. At 15 cents/mile I would owe $ 1700. I would also have to buy used tires before I turned it in. If I buy it out, I’d need to purchase new snow tires before winter. My buyout is $ 9776. I have 47,333 miles on the car, and it is in very good condition. It has been in a couple minor accidents, but all needed repairs were made. My gut tells me I’m better off buying out the vehicle & keeping it a year or so. I have read the TC is among the top 10 vehicles that hold their value. Kelly Blue Book values it between $ 12,000-$ 14,000. I’d have to take out a loan. My parents would cosign, and they have excellent credit. My current lease payment is $ 279/mo. & I’d like to keep my buyout payment around that amount. I like driving the car and it has been very reliable. Should I buy the lease out?

1 Thought on Financially, is it better to buy out my lease, or turn it in?
  1. Reply
    R J
    July 20, 2011 at 7:17 am

    Possibly. You’d be buying a car that you know at a below market rate. If you paid anything in “capital reduction” (another way of saying ‘down payment’) at the beginning of the lease then you’d even be better pointed in the purchase direction or in the direction below…

    Another option is to re-lease the car with a zero dollar residual value at lease end. That is, at the end of another 3 years, you’d receive title to the car free and clear. Your lessor, based on your past experience, would take this deal without your parents co-signing, My calculations would put you very close to the $ 279/mo. figure you say you can live with.

    Good thinking on your part for wanting to analyze the situation and best of luck to you. RJ

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