My lease is ending - what's next?

My lease is up, now what?

If you’re embarking on your first lease, there are some things you should know before your lease ends.

1.)  You’ll have two main choices – to buy your vehicle or give it back. If you choose to buy, SVG can prepare the financing paperwork for you. Should you choose to return the vehicle, you will no longer have the monthly payments, but you won’t have a vehicle anymore, either! You may also incur some fees when turning your vehicle in. We’ll discuss this more in detail later on in this post.

2.)  Your purchase price for buying your leased car is not negotiable. The amount you pay was determined when you originally leased the vehicle. It’s called your residual value, and the amount would have been shown to you when you signed your lease.

3.)  If you don’t want to buy out your lease, but you still need a car, SVG will be happy to offer you options for leasing a newer vehicle. Many people prefer this option over buying new cars. Usually, lease payments are smaller than purchase payments, and by leasing, you’ll get a brand new car every few years.

4.)  Before your lease ends, you will be required to have an inspection of your vehicle to look for excess wear and damage.

5.)  If you turn your leased vehicle back in, you may encounter some fees. One may be the “excess wear charge”. Leasing companies expect you to return the leased vehicle in excellent condition with only minimal wear. If your tires are excessively worn, there is body damage, or damage such as interior rips or stains, you will likely be held liable for the cost of these repairs. Your best bet to avoid these fees is to treat your leased vehicle exceptionally well from the first day you take possession of it. If you get a dent, contact your insurance company to have it repaired. If the tires are bald, replace them. Diligent maintenance on a leased vehicle is not only responsible and safe, it could save you money in the long run.

6.)  SVG provides its customers with the best value in 50 miles; this isn’t just for vehicle purchases. It also applies to leases! Every month, SVG will investigate which incentives the manufacturers are providing, and then add their owndiscounts on top of that. If you’re getting close to your lease end, visit our incentives page to see what great deals we have lined up for you.

Categories: Finance