Transitioning from leasing a car to owning it could be a great financial move, but there are some things you should think through first. Below we’ve provided you with a guide for everything you need to know.
Check the Buyout
The first thing to do when determining if you’re going to buy your car is to check how much you still owe. Make sure you look into the fine print to see if there are any fees or early termination charges.
Find the Value
You’ll want to research the value of your vehicle to see if it’s worth buying it. As Marketwatch suggests, use Kelley Blue Book to find your vehicle. If the cost of buying your car is at or less than the current value, it’s likely a good move to do it. If the total of the buyout is something like $20,000 and your research shows the vehicle is valued at $25,000, you’d be coming out $5,000 ahead. Likewise, if the value of the car is lower than the buyout, you probably don’t want to purchase the vehicle.
Once you know the value of the vehicle, you should consider other factors. Have you maintained the car? How is the car’s overall history — do they traditionally last long? Will you end up wanting a different car a few years down the line? If your research and your other considerations point toward buying the vehicle, you should feel confident in the decision.
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Adapted from an article distributed in partnership with SavvyMoney with reporting by Chris O'Shea