Is it right for you?
Many areas of life continue to be impacted by the pandemic, including the supply chain for hundreds of industries. One outcome is the scarcity of inventory for new and used cars, causing prices to skyrocket. Specifically, it’s produced a global microchip shortage that cars require, and auto manufacturers have cut millions of vehicles from their production plans in the coming months — with automobile deficits projected to last into 2023 or longer.
If you’re leasing a vehicle, consider a buyback.
Consumer Reports shares this information from TrueCar, a firm that tracks the automotive industry: Used car prices were up 35 percent in June of this year (2021) compared with June 2018, when many of the calculations for cars coming off lease now were being made. “There is a strong relationship between buyouts and used prices,” adds Nick Woolard, an analyst at TrueCar. “When used prices are weak, more customers walk and let the dealer keep the vehicle.”
Car prices have increased dramatically.
With prices rising, it makes sense to hang on to your leased vehicle. In years past, for example, drivers would typically return their car at the end of the lease and immediately lease another car from that automaker. This trend has swung.
Consumers Reports notes that “the math has changed lately because of the pandemic and because a global shortage of microchips needed in new cars that has pushed up prices for vehicles new and used.”
It’s also important to note these shortages may stretch well into 2023.
While the market remains uncertain, a lease buyback is an excellent alternative — allowing you to keep the car you’ve got without having to shop for something comparable among scarce inventories. Request a buyback from your leasing agent, which will occur at a predetermined buyout price.
According to TrueCar, “almost all leases have a buyout clause that allows the consumer to buy the car at any point during the lease. But the rate of depreciation is precalculated, so the leasing company can’t change the buyout price based on current market conditions. Although extremely high used car prices have put a lot of consumers in a tough spot; they’re a boon to people who want to buy out a lease.”
It’s perfect timing if you’re leasing. You can buy back the car — at lower than the current market value. You can buy the lease out at any time during the lease. You can purchase the lease even if you are over the mileage allowance. Then turn to us for financing:
The market is uncertain, and experts don’t expect significant changes any time soon — and a lease buyback could be the ideal alternative for you.
MarketWatch confirms the benefits:
Read the full article here.
Contact us. We can give you the information you need and, if you decide on the buyback, help with a low-cost loan.
*APR=Annual Percentage Rate. Rates are subject to change without notice.
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