 | rad Train is the General Manager overseeing day-to-day operations of Saturn West & Saturn East for the owner Scott Davies. He joined the Wichita Saturn team in 1994 as a Sales Consultant, after 3 years he entered the Saturn Management Team. Brad is a graduate of Southeast High and Butler Community College. He and his wife Michelle have 3 children; Shelby, Andrew and Jacob. You can contact Brad at (316)219-5500, or by e-mail at bradtrain@saturnwichita.com |
Car Salespersons Are People Too
2003-09-01 10:08:00
Should I buy my leased car?
ANSWER: Many people ask me they should buy their car at the end of their lease. Usually the end of lease purchase price, also known as the "residual value", is an early estimate for the actual market value of the car, based upon time of return. The answer to your question however, is sometimes it can be a good deal for the customer and other times, depending upon market conditions and the supply and demand of various things, it may not be. Currently there are a record number of 36-60 month leases that started in 2000 that are ending. Shoppers realize the buyout price is sometimes much more than the market value, and are giving their cars back to leasing companies instead of buying them. Combine this with the low APR financing on new cars, and heavy factory incentives, not too many are buying their leased car when they can buy new. This has made for a backlog (over supply) of used cars, thus values have depreciated much more than expected in 2001-2003. So, again, at times the answer might be yes, but in the present situation, it may be in the best interest of the customer to let the leased car go back and buy new, or look for other used car buys. Remember, every situation is different and if you need help with your decision, talk with the dealer that you're working with.
