If your lease is ending in six to twelve months you have several options to consider. Regardless the make or model of the car you’re currently leasing, Hello Mazda of Valencia is here to help you navigate your options and make the lease maturity decision that’s right for you.
You have several options at the end of your lease. Hello Mazda of Valencia can help you easily navigate your options.
Chances are the last time you looked at your lease contract was the day you signed it and took delivery of your car. That’s okay, because that’s the case with most customers we work with. So what exactly are your options at lease maturity?
As you approach your lease maturity you have a few options to consider:
Turn in your leased vehicle at the end of your lease – This is the traditional approach to lease maturity where you simply turn in your lease and walk away. If you plan to go this route, you should be aware of what to expect when turning in your lease, which are further detailed below.
Purchase your vehicle off-lease – Your original dealer, or another dealer of the same make, can assist you with the buyout of your current lease. Read more below to learn when it might make sense to buy your car off of lease.
Trade out of your lease and take advantage of potential trade equity – In some situations you might be able to leverage equity in your current lease to put cash in your pocket or towards a new vehicle purchase. Read more below to learn about how you can use your current lease to your advantage.
Contact Us To Discuss Your Lease and, Buyout and Trade Options
If you plan to keep your leased vehicle until your lease maturity date there are a few steps you must take to complete the turn-in process:
Leased Vehicle Inspection – Within 30-days of your lease maturity you will need to schedule a vehicle inspection. Typically a third party inspector will look at your vehicle, assess condition and determine if there is any damage, wear or tear outside the normal parameters set forth in your lease.
Fees For Excess Mileage, Wear and Tear – If the inspector determines that your vehicle has damage, wear or tear beyond parameters in your lease contracts, or outside of any lease wear coverage you elected to purchase during your lease signing, you may be charged extra fees. The fee level of repair and/or reconditioning required and may include fees for worn tires, body damage, interior damage, outstanding maintenance or other wear.
Lease Disposition Fee – Be prepared to spend a lease disposition fee between $300 to $600 when turning in your lease. If you lease another vehicle of the same make, it is likely that your disposition fee will be waived.
Return all sets of keys, books and factory equipment with the car – It’s important to return your car with all of the factory equipment provided when you bought it. This includes keys, maintenance books, floormats and so on.
Is it a good idea to purchase my car off lease?
For some people, purchasing their vehicle and the end of the lease term makes sense. In other instances, that’s not the case. Here are some things to consider before buying out your lease:
How does your contracted residual value compare to comparable vehicles for sale in the marketplace? If your residual is higher than what comparable cars are selling for, buying out your lease might not be the best idea.
Did you overestimate your anticipated miles driven and now have much fewer than your contract allowed for? If for some reason you are well under the allowed mileage contracted in your lease, your car may be worth more than your residual value suggests.
What condition is your car in? Did you baby your car, maintain it meticulously and treat it like you’d own it for many years to come? If yes, it’s probably a contender for purchase.
Do you anticipate excess wear and tear or mileage charges? If yes, buying out your car can allow you to avoid those charges. You do, however, need to consider potential maintenance costs associated with the items you would’ve been charged for.
What is your desired payment range and can you get approved for financing? One advantage to leasing is a reduced monthly car payment. The payment range you’re comfortable with, coupled with current financing rates, will help determine if buying your car makes sense.
Do you like changing cars every few years? If yes, leasing might be the better option for you.
Are you comfortable paying for future repairs out of pocket? For most of your lease your vehicle likely fell within its new car warranty period. If you like the peace of mind of having a warranty at all times, leasing might be a better option.
Can I trade out of my lease early or get out of it completely?
There are a few ways to get out of your lease early:
Buyout your lease– If you’d like to keep your car, you can typically buy it out at any time. Your lease provider can provide a real-time buyout value at any time. Buying the car outright, then selling it yourself is also an option, but you should be sure to take into account any sales tax required when you buy out your lease.
Trade in your leased vehicle – If you intend to get a different vehicle, a dealership can buyout your lease and apply and equity towards your new vehicle of interest.
Work with a dealership to buy out your leased vehicle – Most manufacturers allow dealerships to buyout consumer leases during the contracted lease period. The difference between the lease buyout and value the dealership puts on the car will determine if it will require money out of your pocket to terminate the lease, or if market conditions allow, potentially put lease equity in your pocket following the buyout.
Transfer your lease to someone else – Most lease companies allow the transfer of a lease to another party. So, if say your brother, friend or colleague wanted to assume you’re existing lease, they most likely could. Do bear in mind that in some cases you still remain tied to the lease, so be sure to vet whomever takes over your lease if you go this route.
Contact Us Today To Discuss Your Lease End Options!
Is your lease ending in the next few months near Santa Clarita, Ca? Contact our Hello Mazda of Valencia Lease Specialists to explore your options! You have multiple lease end options if your lease is expiring in the next month, 3 months, 6 months, etc. We are always looking for lease returns in Los Angeles, Palmdale, Glendale, Alhambra, San Fernando, Simi Valley, Pasadena and Van Nuys. Hello Auto Group has 2 dealerships conveniently located in Valencia, Ca with a brand new Subaru dealership being built right next door. We specialize in Kia, Mazda, Toyota & Subaru but take lease returns on most makes of vehicles such as Nissan, Honda, Acura, Lexus, Volkswagen, Mercedes Benz, Audi, BMW, Dodge, Ford, Chevrolet, GMC, Cadillac, Jeep, MINI, Scion, Hyundai, and more. Our Lease Specialists can help you get out of your current lease and into a new lease, help you decide whether you should buyout your lease or turn in your lease. Stop by Hello Mazda of Valencia in Santa Clarita, Ca on Creekside Road for your lease end!