Is It Time to Renew or Turn in Your Auto Lease?

If your auto lease is coming to an end, you might be wondering what your next steps should be. This can be both an exciting and a daunting time, as you decide whether to renew your lease, turn in your vehicle, or perhaps even purchase the car outright. Making the right choice depends on your personal circumstances and understanding the options available to you. This blog will guide you through the decision-making process, helping you make an informed choice for your future on the road.

What Should I Do at the End of My Auto Lease?

When your auto lease reaches its conclusion, you generally have three main options:

1. Renew the Lease: If you've enjoyed driving your car and want to continue doing so without the commitment of ownership, renewing your lease might be a suitable option. This often involves negotiating a new lease term with potentially revised monthly payments.
2. Return the Vehicle: If you're ready to explore new vehicles or find the lease terms unappealing, returning the car could be your best bet. Ensure the vehicle is in good condition to avoid any additional fees for wear and tear.
3. Purchase the Vehicle: Many leases include a buyout clause, allowing you to purchase the car at the end of the lease term. This can be advantageous if the vehicle's market value exceeds the buyout price or you simply love the car and want to keep it.

How Do I Make the Decision?

Deciding on the best course of action involves several factors:

• Financial Considerations: Examine your current financial situation and future budget. If your financial status has changed since you first leased the car, this could impact your decision significantly.
• Vehicle Condition: Inspect your vehicle for any damages or excessive wear. Returning a car in less-than-ideal condition could lead to fees; purchasing it may be more economical if repairs are needed.
• Lifestyle Changes: Consider how your needs may have changed since the lease began. Perhaps you require a larger vehicle for a growing family or a different type of car for a change in commuting habits.
• Current Market Conditions: It's wise to research the current auto market. If used car prices are high, purchasing your leased vehicle could be a smart move.

Can I Keep the Car?

If you've decided you want to keep the car, you can opt to purchase it. This process typically involves:

• Understanding Your Lease Agreement: Check your lease contract for the buyout price, which is the amount you'd need to pay to own the vehicle outright. This price is usually predetermined when the lease begins.
• Financing the Purchase: You can choose to pay the buyout amount in cash or finance it with a traditional auto loan. If you opt for financing, shop around for the best interest rates and terms suited to your budget.
• Negotiation: While some leases have a fixed buyout price, there can sometimes be room for negotiation, especially if the market value of the car is less than the buyout price.

How Do I Turn a Lease into a Traditional Auto Loan?

To convert your lease into an auto loan, follow these steps:

1. Review the Lease Agreement: Confirm the buyout terms and any associated fees or conditions.
2. Check Your Credit: Your credit score will affect the loan terms you're eligible for. If needed, take steps to improve your score before starting the application process.
3. Apply for an Auto Loan:
4. Complete the Purchase: Once approved, use the loan to pay off the buyout amount.
5. Finalize Details: Transfer registration and insurance to reflect your new ownership status.

Reaching the end of an auto lease presents several options. Whether you choose to renew, return, or purchase your vehicle, the decision should align with your financial situation, lifestyle needs, and market conditions. By taking the time to evaluate each option, you can make an informed decision that suits your unique circumstances.

Remember, the best decision is one that meets your needs and keeps you comfortable and happy on the road. You can always stop by one of our branch locations for assistance or reach out to our member service call center at 781-784-7725 or toll free at 1-877-661-3300.