It’s Time to Buy Your Rented Car
Usually, buying a car for rent is not the best deal. But then again, these are not normal times. As prices on used cars increased by more than 34% compared with the same period last year , you may be able to redeem your car at the price of leasing, which he sold in the market right now. By doing this, you can sell your car to dealers and get the difference. Here’s a look at how it works.
The market value of your rental car has skyrocketed
Most leases have a buyout clause that allows you to buy a vehicle at any time during the lease term. Your rental agreement includes a residual value, which is the pre-calculated value of your vehicle at the end of the rental period. But due to vehicle supply problems associated with the pandemic, the residual value of vehicles could now be much lower than their actual market value. For example, on a lease, your used car may have a residual value of $ 15,000, but that price probably doesn’t account for the sharp 34% increase in car prices last year, which would add up to $ 5,100 in rental capital.
By comparing the market value to the total cost of buying your vehicle early (residual value, remaining monthly rental payments, sales taxes, and possibly end-of-lease fees), it is possible to go ahead with buyouts to sell your vehicle on the open market.
How to find out the market value of your car
You can find used car prices based on the make , model and mileage of your vehicle using car rating sources such as Kelley Blue Book , Cars.com , TrueCar, and Edmunds . From here, you can compare the actual market value of your vehicle with the residual value shown on your lease, as the difference will help you decide whether to buy it (some models are more in demand than others). Once this is done, you can ask your dealer to make a buyout offer that includes the remaining payments and a possible end-of-lease payment. If the math looks good, you can sell it or pay off that capital on a new lease for another car.
However, car companies are popular.
As Yalopnik points out , you can usually invite dealers like Carvana or Vroom to buy a lease directly from your car finance department and they’ll cut you a check for your equity or invest that value in a new one. rent of one of your own cars. However, citing supply chain problems , Honda recently joined Nissan and GM in refusing to accept buyouts from unaffiliated dealerships, forcing car owners to return vehicles to the dealers from whom they bought them. This, of course, prevents you from getting the maximum bid for your car.
This does not mean that you cannot purchase the vehicle at the buyout price stated in the agreement, but that you will need cash up front or to finance the purchase with a loan. It’s more problematic and more risky (since the buyer doesn’t line up right away), but once that deal is completed, you can sell the car to anyone.