CONSIDER A LEASE BUYBACK

We continue to see the pandemic’s effects throughout the US, including its negative impact on hundreds of industry supply chains. The automotive industry, which impacts nearly all of us, has seen a shortage of vehicle inventory for both new and used vehicles since the pandemic. The result is longer delays when purchasing new vehicles, inventory shortages, and rising car prices, particularly in the pre-owned market. 

It makes sense to buy back your lease. 

When car prices are rising, a lease buyback makes good financial sense. Consumer Reports shares this information from TrueCar, a firm that tracks the automotive industry: Used car prices were up 35 percent in June of 2021 compared with June 2018, when many of the calculations for cars coming off lease were being made.

“There is a strong relationship between buyouts and used prices,” says Nick Woolard, an analyst at TrueCar. “When used prices are weak, more customers walk and let the dealer keep the vehicle.”

Are you currently leasing?

For those who are, it’s an ideal time to consider a lease buyback. You can buy back the car — at lower than the current market value — for added budget relief. In years past, drivers would turn their car at the end of their lease and immediately lease another vehicle from that automaker. That trend is shifting because of the shortage of cars.

Consumers Reports adds that “the math has changed lately because of the pandemic and because a global shortage of microchips needed in new cars that has pushed up prices for vehicles new and used.” While the market remains uncertain, experts predict these shortages may continue well into 2023. 

A lease buyback lets you keep the car you know and trust without shopping for something comparable among dwindling inventories. To request a buyback, contact your leasing agent and request a buyback, which will occur at a predetermined buyout price.

Case-in-point:

According to TrueCar, “almost all leases have a buyout clause that allows the consumer to buy the car at any point during the lease. But the rate of depreciation is precalculated, so the leasing company can’t change the buyout price based on current market conditions. Although extremely high used car prices have put a lot of consumers in a tough spot, they’re a boon to people who want to buy out a lease.”

More reasons to choose a lease buyback:

MarketWatch reiterates the benefits of a lease buyback in today’s environment:

• You can buy the car for less than it’s worth.
• You like the car and took good care of it.
• You are facing a big punitive assessment.
• You want to avoid the hassle of car shopping.
• New and used car prices are higher.

Read the full article here. 

How to get started:

Once you’ve determined the buyout price, turn to us for a sensible financing solution. We’ve kept auto loan rates low during this trend, which keeps payments affordable.

Questions?

Contact us. We can give you the pros and cons and if you decide on a lease buyback, assist with an affordable financing solution. Or click here to apply.

Sources: 

https://www.consumerreports.org/buying-a-car/why-you-should-consider-buying-your-leased-car-a8796205972/ 

https://www.marketwatch.com/story/should-you-buy-your-leased-car-yes-heres-why-11622126030