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If your lease is almost up, but you would like to keep your vehicle, learn to negotiate with your bank to buy your car from a lease.
Step 1: Review your documentation
Check the lease documents to see if a purchase quantity is in the list. Find the residual value of the car, plus a call option fee. Typically, the purchase option fee is $ 300 to $ 600.
You can also buy your car before the lease ends. This is known as an advance purchase and is typically more complicated than a final lease purchase due to price factors. Check with your bank or lease holder for more information.
Step 2: Determine Market Value
Look at Kelley Blue Book to determine the fair market value of your car. Compare the market value with the residual value to see if you would be getting a good deal.
Check with your leasing company to ensure that your purchase will not be considered an early termination of the lease.
Step 3: Negotiate a price
Discuss purchase and price options with your dealer or leasing company. Ask about other incentives such as the elimination of the call option fee or a discount lease purchase loan.
Step 4: Seek funding
Look for the best financing rates on a purchase-lease loan. Your current leasing company may not offer the best rate, so it's worth looking elsewhere.
Step 5: Be persistent
Be persistent with the leasing company. After all, if you simply returned the car, you could only expect to get a wholesale price at a dealer auction. Explain that it is a win-win situation.
Did you know?
In 1908, a Model T Ford cost $ 850. Four years later, the price fell to $ 550.
Video credits to Howcast YouTube channel