Are you stuck in a vehicle lease with irritating mileage limits, high overage charges, and frustrating vehicle modification restrictions? If so, it could be time to buy out your vehicle lease and reap the benefits of outright ownership. If you’re on the fence about buying out of your vehicle lease, take these three benefits into account.
1. Close-Out Your Lease Payments
When you lease a vehicle, you sign up for recurring vehicle payments – and sometimes, they can feel as if they’re never ending. Though when you buy out your vehicle lease, when the payments end you own the vehicle. This can make it easier to free up your budget for other major financial goals, such as saving up for a down payment on a home. Plus, the longer you keep the vehicle after paying it off, the more you can save on accumulating transportation expenses.
2. Free Yourself from Mileage Limits
When you signed your lease, you probably noticed that you have monthly mileage limits to comply with. If you go over these limits, there’s an overage fee per mile. Rather than rolling over to another lease agreement to accommodate more monthly miles, we suggest buying out your vehicle lease. Even if you sign up for a high mileage lease plan, you could still end up paying as much as 50 cents per mile that exceeds your monthly limit. By purchasing your vehicle outright, these restrictions and overage charges effectively go out the window.
3. Take Ownership of Your Vehicle
After you buy out your vehicle lease, you own the vehicle outright. Sure, it’s a depreciating asset, but ownership comes with a slew of perks that aren’t available under a lease. One example is not having to worry about exceeding your monthly mileage, as previously pointed out, or having frustrating restrictions on desired vehicle modifications. Furthermore, you’ll attain the right to sell your vehicle at any time and potentially use those funds to purchase another vehicle.
By getting prequalified for an auto loan, you can have more buying power at the dealership or finance the car you already love. Our loan experts are here to listen and support you. We invite you to browse our member benefits to see the advantages of joining us as a member. Contact us at (800) 835-3400 to speak with a Member Advisor, or visit us online at caminofcu.org for more information on our offerings.