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Lease to buy?

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Regular Contributor

Lease to buy?

Hello all! I’ve been around the forums for a bit. Little backstory to myself a few years back I was 18 and messed credit up. I have worked hard to see the low 700s now and have multiple CCs and a car loan which is almost paid off.

Once my car is paid off ($2400) left to go I would be interested in possibly keeping the car and getting a lease to drive when needed. Longer trips as it’ll be more reliable etc etc. if I decide to do this and want to buy the car but go over mileage am I responsible for the overage even if I would buy the car after the lease is done.

Looking at a GMC Terrain. Nothing fancy or too much I also have a GM discount I can use as my deceased grandpa worked at GM my grandmother has told me.

AAoA:1.4 years
1 car loan: no lates $2400 left
9 CCs: $740 balance out of $20000 limit total (around 3-5% UTL)
1 personal loan: $2300 left no lates

Income: 25k/yr also age 24.
Message 1 of 5
4 REPLIES 4
Member

Re: Lease to buy?

Lease cars have mileage restrictions and you are held responsible for those mileage overages. Instead of getting a lease car that you think you will run high miles on, consider purcahsing a reliable car that you can drive as many miles on that you wish. Reliable cars dont have to be new and expensive, there are plenty of CPOs out there that are great vehicles and will give you the flexibility that you want.  Also, consider the type of financing. Residual based finanncing may be a good idea as long as you get a loan with a buy back provision (some credit unions offer and fiwize.com has them too).  You own the car, pay down the loan down until the residual value. Then you decide if you want to keep the car (and pay the rest)...or return it with the buy back. Check the mileage allowance on the buy back provision to make sure it works for you. Good Luck!

Message 2 of 5
Regular Contributor

Re: Lease to buy?

Thanks. That is what I currently did with the car I have now. It wasn’t CPO though. My
Biggest question of leasing is if I lease and then buy the car if go over the mileage am I responsible for that even though I’ll be purchasing the car afterwards? I am aware of everything else About leasing as I have been reading up on it
Message 3 of 5
Member

Re: Lease to buy?

Got it.. you should be able to avoid the mileage surcharge if you buy the lease vehicle (they do surcharges for covering their resale).  Remember you don't have to finance the new loan to purchase the vehicle through your current leasing company, so shop around.

Kristi

 

Message 4 of 5
Regular Contributor

Re: Lease to buy?

Thanks! That’s what I was looking for. I’ll have to see what kind of credit unions or other third party companies do leases. Thanks again for the input just trying to get whatever info I can before making a decision within the next year or so
Message 5 of 5
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