subject: Is It A Good Idea To Buy Your Vehicle At The Conclusion Of The Leasing Contract? [print this page] It is the dream of everyone to own a car. But for those who can not afford to lay out thousands of dollars at a single sitting to a dealer, lease a car agreements are a possible and plausible option. But all those people who enter into such terms often find themselves begging the question near the end of their agreement whether it is not worth buying out their vehicle at the end of the time period. It would, after all, answer their dreams. It also grants them a new freedom which they will never have before experienced with that particular item.
So long as a car is leased, rather than bought, people are always concerned about keeping good care of the vehicle. They must, after all, be responsible for the short term rent of an item from a company which wants it back eventually. People often forgo going to fast food drive throughs because they are worried about leaving a smell in their temporarily hired vehicle. Likewise, they will often drive extremely slowly and carefully so as not to damage the item in any manner, which could cost them dearly when the vehicle leasing company inspects it.
Therefore there is an advantage in owning such a thing. If someone wants to eat fast food which will leave an odor in the leather, they can. If they want to drive the car heavily on the brakes, they can do so with impunity. A person's personal possessions can be treated with less care than someone else's possession on loan.
Buying at the first opportunity therefore seems quite wise. But there are drawbacks. If a person is using a car for only the odd occasional journey, then it is often easier to loan rather than to purchase.
If this is the case, staying in the lease contract may prove more useful. But if the converse statement is correct, buying rather than continuing to rent may be smart. This is good in many ways.
These contracts are designed to make money. Therefore, it is likely that a person will be paying more than they would for a new car purchase in continuing to hire the vehicle. It is obviously then policy to purchase it and keep it than to roll over any contract in to a new term, no matter what the discounts.
Contracts such as these are useful for short term usages. However, as soon as it becomes a long term investment, it is a better deal to buy than to try and loan. The first opportunity that comes up to make the purchase permanent should be seized with both hands.
The terms offered will also likely be very favorable. Companies cannot get rid of a vehicle which has been used for a long period of time for any price. They will therefore almost give it away at the end of a car lease contract, which proves best for any prospective buyer. All these are smart reasons to buy out a contract when possible.
by: Dirik Hameed
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