Overhaulin'

Is it cheaper to buy out someone's lease on a car and then buy the actual car at the end of the lease?

I don't know a lot about cars or leases. I was playing around with a site where you can buy out people's leases. I'm thinking you can buy out the lease with a few months left and then just buy the car at the end of the lease. It's used and the person before already paid almost all of the payments. I'm thinking you can swoop in with the right lease and save money buy buying a car this way as opposed to a used car. Is this reasoning sound?

Public Comments

1. You might want to think about this a little more and do more research. The reason that car dealers and auto manufacturers developed the lease program is so that they could turn around and make more money on a single car than they could if they only sold the car one time. The way a lease works is....the dealer leases the car to you for a set amount of money for a set amount of time (normally between 2 years and 3 1/2 years). You cannot put more than a set amount of mileage on it per year (normally 12,000). What the dealer is trying to do is try to maintain the maximum amount of equity, or worth of a vehicle. At the end of the lease, the car would be only slightly used, still in gnerally great condition, and with low miles on it. Over the past 10 years or so, the consumer has tried to get away from purchasing a new car simply because once you sign the papers and drive off the car lot, the car loses some of its value (could be anywhere from $1,000 to $10,000 or more, depending on the type of vehicle). The auto manufacturers took notice of this and saw that a higher percentage of car buyers were purchasing slightly used cars. The auto manufacturers also noticed that they were losing money, since they would only profit on the car ONE TIME (selling new). The auto manufacturers wanted a piece of the pie concerning used cars, so they developed a way to sell a single car more than one time; thus bringing in more profit. The way that the auto manufacturers lure people into leasing a car versus purchasing one outright is by offering a lower payment than purchasing new, but still being able to get a new car (just cheaper payments). The lessee must return the car at the end of the specified time period (given in the lease) and within a maximum amount of miles (if the car is returned with more than the maximum mileage, a penalty is charged by the lessor). Leasing is a good option if a person normally trades in their vehicle on a regular basis (within every 2 or 3 years). This keeps payments down with the ability to always have a newer vehicle. Keep in mind that if you continue to lease over and over again, you will never be payment free. You will always be paying a car payment. This fits some people's goals, while it isn't economical for others. So, to answer your question, I don't think it is in your best interest to purchase another's lease-end vehicle online. You would have much better luck and selection by going to your nearest car dealer and asking for a slightly used car or asking for the lease return vehicles. You would most likely have the same price (given the same type of car) no matter which way you purchase. I would always want to physically see the car and drive the car before I purchase, simply to see if you ultimately like the car and to see if there are any mechanical problems. Hope this helps.
2. Cheaper just to go buy a used car.
3. Every situation is different, but in many cases, the leases that you would take over have high lease-end purchase prices, when compared to the same make/model vehicle purchased from a dealer or individual. However, the advantage would be that if you drive the vehicle for a few months, you know all about it, how it drives, what condition it's in, and how it's been taken care of. You would not know that about a similar car that you buy on the open market. Therefore, if you have to pay a higher price for the leased car, maybe it's worth it.