Most lease contracts have a buyout option that allows you to buy the car either during the lease or at the end lease period. But, if you decide to switch your Fiat car lease to finance before the lease expires, you may end up paying more than if you waited for the lease term to end.
That’s because aside from the buyout amount, you’ll need to pay lease termination fees and the remaining monthly lease payments. What else does the lease buyout entail? Keep reading to find out.
How Does It Work?
When signing your lease contract, the lessor provides the Fiat Financing Buyout option by setting an estimated residual amount at the lease-end. There are no restrictions on how to pay for the vehicle in the event of a buyout. You can either pay as a loan or in cash.
It makes more economically sensible to switch your car lease to finance only if the buyout price is equal to or lower than the car’s market value. But in some cases, buying out the lease would still be a financially sound decision even if the car’s buyout price is higher than its market value.
Nevertheless, whether the buyout amount is higher, equal, or lower, equal than the book value of the car, you can find auto refinancing lenders to finance the transaction.
How To Determine Whether To Switch Your Car Lease To Finance
You’ll first need to calculate your total obligations should you decide to keep the car. Assuming you’re ending the lease mid-term, this could include the lease termination fee, the remaining monthly installments, the residual amount, and any other charges stipulated in the contract.
If you’re converting at the end of the lease, you only need to consider the buyout price. Then, estimate your leased car’s market value to see how much you would pay for a similar used car. If the car’s buyout price is lower or equal to its market value, converting would be a sound decision.
You should also factor in the cost of maintaining and servicing the car. If you have kept the car in excellent condition and all the necessary repairs and replacements have been done before the lease ends, you should consider buying it instead of getting a second-hand car you’re not even sure about.
Bottom Line
Whatever the decision, you can talk to us at VIP Auto Lease of Westchester and learn more about our leasing and Fiat Financing Buyout options. As a dealership, we prioritize the interest of drivers.
Visit us today at VIP Auto Lease Of Westchester 1139 W Boston Post Rd, Mamaroneck, NY 10543 (877) 847-7888 https://vipwestchester.com/
