Are you looking at your car leasing options now that your current lease is almost up? At Stockton 12 Honda in Sandy we are dedicated to making the car leasing process easy for you! We know that the car leasing and car buying process can sometimes be stressful so we went ahead and broke down the car leasing options for you to help you make the correct choice for you. Either browse through the page or click the button below for the option you think best suits you!
The first step is to decide whether or not you want to keep your vehicle. It can be hard to know what to do when there are a few options to choose from. This guide will make it easy for you to decide which option is best for you. 1. Keep your car. 2. Return your lease and lease or purchase a new car. 3. Trade-In your lease to lease or purchase a new car. Continue browsing to learn more about your car leasing options.
Option 1: Keep Your Car
Keeping your car is a great choice! If you would like to you are able to purchase the car at the end of the lease. In most cases you are able to buy your vehicle for the residual amount outlined in the initial lease agreement, but it is always best to contact a representative at our dealership. Feel free to give us a call at (801) 981-4920 and we will help you purchase the vehicle that you love! Why would you want to buy your leased vehicle? Read below.
Main Reasons Why A Customer Chooses To Purchase Their Lease
- They were way over or under their allotted mileage
- Their leased vehicle had excess wear and tear
- They loved the vehicle and it fit well with their lifestyle
Option 2: Return Your Lease & Lease or Purchase A New Car
If your car, truck or SUV does not have any leased car equity, little to no excess miles or no significant wear and tear, returning your lease and leasing or purchasing a new car is a good option. You can find your allowable miles on your lease agreement and the miles overage charge as well. Look below for a breakdown of normal and excess wear.
What is the difference between normal wear and excess wear?
Normal Wear
- Minor and expected imperfections
- A few small door dings
- Minor paint scratches and chips
- Tire tread worn to no less than 4/32 inch
Excess Wear
- Abuse, neglect or poor maintenance
- Damage or physical alteration
- Use of inferior parts and materials for repair
Leased Car Equity is when your leased vehicle has a market value greater than the Residual Value that was given in your lease terms. If your current vehicle's value is less than its residual value you should consider returning your lease over trading it in.
Option 3: Trade In Your Lease & Lease or Purchase A New Car
Comparable to Option 2, this is a great option if you want a new set of wheels.
But, when should you look at trading in your vehicle instead of returning it?
- If your leased vehicle has a market value higher than its residual value or payoff price.
- If its return condition is not optimal and has excess wear or mileage that could incur high return fees.
When you trade in your lease to Stockton 12 Honda, we purchase your leased vehicle from the finance company holding your lease in order to resell it as a used or pre-owned vehicle. You also may be able to make some money from your trade in. If the current vehicle's market value is higher than the payoff price, you can use the difference as a down payment for your next car leasing. If however, the market value is not higher than the remaining amount can be rolled into the payments of your next vehicle's purchase or lease price.
Trading in a vehicle that has a lower market value than the payoff price can still be cost effective if you know your
vehicle will incur excessive miles or damage fees when you return your lease.
Option 4: Lease Pull-Ahead
Lease Pull-Ahead Programs are incentives offered my the manufacturer to help get customers out of their current lease and into a new vehicle, as long as your lease matures within a specific and predetermined date range.
These car leasing offers are controlled by the manufacturer so they are not always available. When these offers are available you can usually trade in your current lease early and get into a new vehicle with the same or close to the same payments and no early termination fees. Please contact a representative to see if any lease pull-ahead offers are available.
Some lease pull-ahead programs are setup to cover a predetermined number of remaining payments, up to a maximum amount. With other pull ahead offers, you receive a predetermined cash incentive to be used toward the purchase or lease of a new vehicle.
A Few Months Out From Your Lease?
Now is a good time to schedule your pre-return vehicle inspection to avoid any unexpected fees and expenses. This will help you understand which car leasing option is right for you. This is also a good time to schedule a Trade-In assessment if you are thinking about trading in your leased vehicle.
Fill out the form below to schedule your inspection.
Should I Buy Or Lease A Car?
Buying or leasing can be a tough choice. Below we have listed some of the main benefits of buying or leasing a car.
Buying a car:
- Modify your vehicle- If you are big into customizing your vehicle the way you want it then buying a car is the right option for you!
- Drive it as much as you want- How many miles do you plan on putting on your car? If the answer is a lot, then you want to buy your car.
- Give it to the kids one day- when you finish paying off your car, that car is yours for life. You own the title on the vehicle.
Leasing a car:
- Get a new car every few years- It can be very fun to drive new cars. Leasing gives that option.
- Take advantage of new car technology- cars are always changing and becoming better. If you lease you have the chance to use the latest technology in the automotive industry.
- No long-term commitment- Get tired of cars quickly? Not a problem, you can change which car you drive every two to three years.
Car Leasing FAQs
Will a car lease improve my credit score?
- 35% of your FICO score comes from payment so leasing a car can have a significant impact on your credit score.
- As long as your lender reports to major credit reporting agency and all your payments are made in a timely manner.
Can a car lease payment be deducted?
- The lease payment cannot be deducted if you use the standard mileage rate for a leased vehicle.
- The lease payment can be deducted if deducted for the business portion.
Schedule a Pre-Inspection
Contact Us
Stockton 12 Honda
10860 S Automall Dr
Sandy, UT 84070
- Sales: 866-942-5832
- Service: 866-942-5891
- Parts: 866-942-5811
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