To Buy or Not to Buy Your Leased Vehicle

You’re leasing a Chevy, and you know the end of your lease is coming up soon because you got a call from a representative to discuss your options. Even after the phone call, you aren’t sure what to do about your Chevy lease return. Should you buy out the lease or return it and get a new lease deal? With your Chevy nearing its end-of-lease agreement, you can start by taking advantage of a free pre-return inspection at the dealership that originally leased you the car or go to the nearest Chevy dealership that participates in lease programs. Use the results of the inspection and your “wear and use” card found in the lease package information to help you discern the worth of your vehicle and choose the best path forward.

Pros and Cons of Getting a New Lease or Buying Out the Lease

There can be advantages to both sides of the equation when it comes to buying out or simply returning your leased Chevy. Honestly, you have the option of buying out your lease anytime during your lease contract, which is typically three years long. During that time, you are generally allotted up to 36,000 miles on the odometer. If you have driven significantly more or less than that allotment, you have options to save money on turning in your lease or just buying out the vehicle for its “residual” value.

One of the biggest factors in the residual value of your leased vehicle is attached to the miles you have driven, and exceeding the miles can be expensive – even into the thousands – when you return it at the end of the lease. If you drove far less than the allotment, you may have a car that is worth far more than the residual value and can mean you get a great deal if you purchase it rather than turning it into the dealer. Market value can be determined by using free services from sites like Kelley Blue Book or CARFAX, which can then help you calculate whether your vehicle is worth buying when the lease is done. Let’s look at both choices more closely.

Returning the Leased Vehicle

When it’s time to return your leased Chevy, unless you have moved away from the region where you originally leased the car, you will take it back to the same dealership for the inspection and return. If you have moved, you can take it to any participating Chevy dealer that leases vehicles. You should already have the results of the pre-return inspection to help guide your next steps, and it’s recommended that you have this done 120 days prior to the lease end date. This inspection will tell you the results of how much wear and tear may have been found in the vehicle and whether or not you are within the guidelines of mileage. An invoice will show any amounts still pending for the contract, plus excess wear charges that will include overage of miles. You may also see toll charges from driving on highways that automate their fees rather than using toll booths.

Another charge that you can expect is the disposition fee which applies to prepping your leased vehicle for resale, an amount which can be found on your lease agreement. Some dealerships charge a security deposit. This may be used toward repairs or to cover any charges or fees due when the vehicle is returned unless you choose to pay for the charges prior to a scheduled return date. If you have taken great care of your leased vehicle and you’re well below the allotted miles for the contract, it may be worth your time to consider purchasing the vehicle if you love driving it.

On the other hand, if you have a lot of excess wear caused by dents or dings on the exterior, rips or stains on the interior, or you have scratches or broken parts anywhere on the vehicle, these can all cost a lot of money when you return the car. In this case, buying out your lease vehicle may be the best decision. For leased vehicles that fall into the average range of wear and overall value, simply leasing another vehicle may be the best way forward. You also may not have particularly enjoyed the vehicle you leased, and having a new one may be a welcome change. A new lease has advantages, so let’s take a look at the benefits.

Advantages of Choosing a New Lease Vehicle

Driving a new car is always preferable to an older model, and it’s exciting to have a vehicle with fresh new features. Leasing can be an excellent choice for people who love driving new models every few years, especially when you know the vehicle is covered by a warranty for the entire lease contract. In addition, when you turn in your old leased vehicle for a new one, your disposition fee is waived. There may be other charges waived depending on the dealership, so it’s worth your time to ask when you have your pre-return inspection.

Another advantage of leasing is having the option of trying out new models without having to worry about the commitment of buying. Leasing gives you the freedom to choose what you like within the budget you have, knowing that you are only committing to a short-term contract instead of a long-term relationship, which means you won’t have buyer’s remorse.

Even better, when you lease a Chevy, if your lease contract ends and you haven’t found a vehicle you love yet, your contract will automatically renew on a month-to-month basis for up to six months after the contract ends. This will give you a cushion of time to be sure about the next model you want to lease, but be aware that you don’t get extra miles for that extra time. Keep within the allotted miles of the original contract so you won’t have to pay overage fees.

Benefits of Buying Your Leased Vehicle

In the case that you love your leased Chevy and want to buy it, GM always offers the option of getting a purchase price at any time during your lease. You don’t have to wait until the lease has ended if you know you want to buy, but it makes good business sense to consider purchasing your leased vehicle by finding out what the residual value of the car will be. With this residual value amount, use an online tool to calculate the current market value of your vehicle, taking into account the current condition. Remember, the value is attached to miles on the odometer and any wear and tear over time.

Take into account the information you received from your pre-return inspection if you are nearing the end of your lease. Depending on how well you cared for the car, this can go a couple of ways: 1) you owe a lot in fees due to excess wear and tear, or 2) you took great care of the car and you drove far fewer miles than expected. Overage fees are negated, and you can receive a partial waiver of excess wear if you purchase your leased Chevy, so that advantage is a great reason to buy. Just remember to count those fees in your calculations. On the other hand, if you took great care of the car, it has a higher value than the residual, and you’re getting a great deal if you buy out the lease.

Once you calculate the current market value, if that value is higher than the residual value of the vehicle, then you would be wise to purchase the car instead of turning it in to the dealer. Do keep in mind that the lease payments you have been making are likely to be lower than the new monthly payments you would make on a loan. Depending on where you get your financing, you will want to find out what the difference would be, so you know the price will still be affordable.

Final Considerations

You can contact your Chevy dealer or GM Financing to discuss the options of your lease at any time. Advantages of buying out the lease lean toward excess wear and tear or exceptionally light use of the vehicle, and advantages of leasing a new vehicle tend to be best for average use. As an aside, GM Rewards members can use points toward paying for excess wear or overage of miles, which may also help sway your decision either way.