Overhaulin'

Car lease buy out at end of lease question?

I am in the middle of leasing a Jeep and I'm thinking of keeping it at the end of the lease. My buy out price is something like 8 or $9,000. Does this have to be paid in full or can I work something out where I can pay this in monthly installments? I don't exactly have that kind of cash to pay all at once but over time yes.

Public Comments

1. I don't recommend buying out a lease at the end, because usually you will end up paying 50% more for the car then you did if you just bought it in the first place. Of course, this depends on your original lease and how good it was. Nevertheless, you can finance your residual (balance) with most auto-finance companies. I believe CapitalOne auto finance will do it, for instance. I would recommend contacting a local credit union--they tend to be more liberal lenders and may save you quite a bit. Why are you choosing to buy this car? Is the payoff less than book value? (check kbb.com to find your car's trade-in value). Is it because you are over the mileage limit and you want to avoid the fees? If it's the latter, did you know you can trade the car in on a new car with no mileage penalty (other than normal depreciation)? I recommend not getting buried in a Jeep with no warranty--if you're stuck with it and owe more than it's worth, then you're paying more than leasing new. Jeep's are not the most reliable things, either, so consider that.
2. You would just finance whatever you decide to buy the car for. I wouldn't buy the Jeep..the good thing about leases is you can turn the car in and wash your hands of it. As stated previously a Jeep with an expired warranty is a bad idea. they tend to fall apart after 3 or 4 years. Just turn it in and get something else...lease another Jeep if you like them.