Overhaulin'

My car lease is about to expire. I like it but is it a mistake to buy it for the payoff amount?

The buy-out option is $14k. It's a 2003 WRX with 36K miles only, and it's been great. I wouldn't mind just keeping it. The guys at the car dealer though, want me to lease or buy a new car. I think they're biased though, since kbb.com says they would turn around and sell my car for over $20k, plus get more money from selling me another car. I know it is dumb of me to lease and consider buying instead of just buying it in the first place, but it's too late to look at it that way now. I'm looking at it like I have no car, and I could buy a great used car for about $6000 less than a dealer would charge. So is that a reasonable decision or would I be making a big mistake?

Public Comments

1. When you're considering buying a lease out, you need to look at the resididual value versus what YOU could sell the car for on the open market. There have been some instances (generally in the higher end imports) where it's been advantageous to buy the vehicle at the end of the lease. Generally speaking though, it isn't. And your dealer probably won't get your car at lease turn in unless he buys it from the leasing company--that dealers get lease turn-ins just because it originated at that dealership is a myth.