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Buy Lease Car - How to Buy a Lease Car

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When you get ready to purchase a car, you normally have three options on what type to purchase. You can buy a new car, lease a car or buy a used car. These different options, like anything else, have their advantages and disadvantages. Within the last six to eight years, however, consumers have found a fourth option to buying a vehicle. It’s called a Certified Pre-Owned car. This means that you buy a lease car. Buying a lease car allows consumers to buy a two to three year old car, still in good condition and most of the time is a luxury car that some consumers would never be able to buy brand new.

So, what exactly is a Certified Pre-Owned car (CPO)? Well, it is an advantage to both the buyer and the seller. The dealership will typically take a vehicle that is less than five years old at the end of its lease, inspect it, fix it, apply an extended warranty and sell it at a premium used car price. So, the seller maximizes their profit and the buyer gets a luxury car at a discounted price with a limited warranty.

Of course, as we mentioned earlier, there are advantages and disadvantages to buying a car in any way. The same goes for when you buy a lease car. Here is a list of some of the advantages to buying a leased car or a CPO:

1. It gives you the ability to buy a luxury car that otherwise, you may not be able to afford
2. It has an extended warranty and will have recently gone through a pretty intense inspection.
3. Some manufacturers may include a car history with your pre-owned vehicle
4. Some may include other incentives such as a free oil change, 24 hour road side service, detailing and low financing rates
5. Since most CPOs are luxury cars, they are more likely to be in better condition and have lower mileage because of lease contracts with luxury dealers
6. Some may offer an exchange or return

Some of the disadvantages that may come about when you buy a lease car are:

1. You will be paying a premium used car price for the extended warranty, inspection and ay other incentive that a manufacturer offers
2. The premium price that you pay will not increase the value of the vehicle for when you decide to sell or trade it
3. Some finance companies may not wish to finance that extra cost on a former lease. This only happens, usually, when the asking price is higher than the Kelley Blue Book Value.
4. Even though when you buy a lease car or a CPO, you have more of a peace of mind from the vehicle inspection, you can still encounter used car problems. This inspection is not a guarantee that it will run like it is brand new
5. You have to be careful where you buy a lease car or CPO. Manufacturers are not the only people selling them now. Dealerships may not offer as many guarantees, advantages, better cars or incentives as a manufacturer will

Purchasing from a manufacturer or dealer, however, is not the only way you can buy a lease car. If you are already leasing a car, you will have the option to buy the car once your lease has expired. Why would anyone want to do this?

• The buy-out price in your contract may be a great deal
• You are familiar with the car, you know its history and how reliable it is or is not
• You may not want to go through the process of shopping for another vehicle or starting a new lease
• You wish to avoid a penalty, like too many miles
• You want to avoid extra fees from excess wear and tear

When you are considering buying your leased car, make sure you check for the true market value and compare it to what the dealer wants to sell it for. If the true market value price is less than the offer in the contract, you will probably want to try and negotiate. Just remember, the dealer does not want to keep the car. They want you to buy it, so they may make you a pretty amazing deal. It never hurts to try!

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