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Acura Extended Warranty Review
Purchasing an Acura vehicle service contract provides a longer and more comprehensive warranty than what comes with your vehicle.
Opting for an extended warranty is typically a good idea, but you still need to purchase the correct plan for what you need. If you plan on only having the car for a few years, you probably don’t need an extended warranty at all. If you want to own it for decades, an extended warranty is almost required.
Today, we’re going to cover the Acura extended warranty. We’ll discuss if it’s worth it overall, compare it to other options, and make our ultimate recommendation.
TLDR:
- Acura’s extended protection plan has four options, with two of them limited to certified pre-owned vehicles
- The main benefit of a third party extended warranty is that you have a wider network of repair shops, while Acura warranties require service from an authorized dealership
- All of Acura’s extended warranties provide excellent coverage, including all major systems and most components
- We recommend Acura’s extended warranties, but choosing a third-party program will be better for some people
Is It Worth Getting an Acura Extended Warranty?
We always suggest that any car buyer consider an extended warranty. While buying them at the dealership is not usually the best way to buy, buying one after the fact is often well worth it. An Acura vehicle service contract can help prevent a costly repair bill. But is this the right warranty for your circumstances? Let’s dive into our Acura extended warranty review.
Acura offers what they call Acura Care. It’s a group of four levels of warranties:
1. New Vehicle Coverage
2. Pre-Owned Vehicle Coverage
3. Certified Additional Coverage
4. Powertrain Coverage (Pre-owned vehicles only)
Acura Factory Extended Warranty vs. Third-Party Extended Warranty
Should you go for a warranty directly from the manufacturer or opt for a third-party vehicle service contract?
You may notice that we aren’t going to talk about pricing in this Acura extended warranty review. If you’re concerned about pricing, you’ll have to obtain several quotes and compare the cost and coverage. Vehicle service contracts are priced individually based on the car (including the VIN and the mileage). This means that neither Acura nor third party companies will post a price on their website.
What is Covered Under a Certified Pre-Owned Acura Extended Warranty?
An Acura certified pre-owned extended warranty has much of the same coverage as their other warranties. The New Vehicle, Pre-Owned Vehicle, and Certified Additional Coverage cover many the same components:
- Acura Genuine Accessories, including navigation systems and audio systems
- Heating/cooling systems
- Chassis, including suspension, steering, and brake systems
- Electronics, including computers and electrical systems
- Drivetrain, including engine and transmission
The above is not an exhaustive list of what is covered. It’s what Acura lists as a sample of their coverage. Acura does not publicize an exhaustive list of what is covered under their Acura extended protection.
The Powertrain Coverage, which is only available to pre-owned vehicles, covers:
- Seals, gaskets, and fluids
- Drive axle, front and rear
- Transmission
- Engine
Acura Care also provides 24/7 roadside assistance and rental care reimbursement for the duration of the warranty. They provide trip interruption benefits as well, which provides $100 per day for up to 3 days if you have covered repairs, as long as you’re more than 100 miles away from home.
What is Covered Under a Third-Party Acura Warranty?
A third-party vehicle service contract is an extended warranty provided by any company other than Acura. There are dozens of reputable companies that you can choose from when shopping around for a third-party Acura warranty.
The coverage will vary based on the program you select. It might cover the same or more components as the Acura extended warranty, or it might cover fewer. It’s important to understand what is covered by the program you’re considering before you sign any contracts. Simply ask the salesperson, and they should provide you with a document that explains coverage and exclusions.
The primary benefit of going for a third-party warranty over a direct warranty is flexibility. Third-party warranty providers have a much wider network of repair shops that you can use for covered repairs. Acura, and most other automakers, require that repairs are completed at an authorized dealership.
Do We Recommend an Acura Vehicle Service Contract?
If you compare a third-party warranty to Acura extended protection, you’ll notice two major differences:
1. Acura provides more perks, such as roadside assistance and trip interruption coverage
2. Third-party warranties have a wider network of covered repair shops
You’ll have to decide which factor is more important to you. We like having repairs done at the dealership when possible since they’ll use genuine parts, as aftermarket parts often have serious issues. That’s a strong positive to any Acura extended warranty.
On the other side of the coin, having more options for covered repair shops is worthwhile, especially if you aren’t near an Acura dealership.
So here the main point of our Acura extended warranty review: While we like the Acura extended warranty program, going for a third-party warranty might be better for your situation.
Audi Extended Warranty Review
Audi is one of the top names in luxury vehicles, so it makes sense that you might want to protect your investment with an Audi extended warranty.
We’re about to cover everything you need to know about the extended warranty offer from Audi, including the different levels of service provided and a comparison to similar third-party options.
The Highlights:
- Audi offers three types of protection, with one of those types having three sub-types.
- Their certified pre-owned extended warranty seems thorough, but not enough information is made available about what’s covered.
- Third-party extended warranty options offer more flexibility on shops where you can have your work done.
Is It Worth Getting an Audi Extended Warranty?
Our Audi extended warranty review wouldn’t be complete without checking out their coverage. The value of an Audi extended warranty will vary from person to person. If you plan on keeping your car for decades to come, then it might be worth it. However, if you like to trade in vehicles every few years, you should probably skip the Audi extended protection program.
Audi has three types of vehicle service contracts for you to choose from:
- Audi Pure protection: The umbrella label of Audi Pure protection includes three additional sub-types, also known as Platinum, Gold, and Powertrain. The difference between these plans is primarily found in the components that are covered. Platinum covers almost everything on the vehicle, Gold covers most major systems, and Powertrain only covers the powertrain system. Audi does not include a complete list of what’s covered under these plans, so make sure that you read through your contract before agreeing to anything. You deserve to know what’s covered and what’s not.
- Certified Pre-Owned Service protection: We will dive into this warranty in detail later, but for now, you should know that this warranty already comes with any certified pre-owned vehicle from Audi. The Audi extended warranty for CPO vehicles adds on two years with unlimited miles to what you’re already getting under their base coverage.
- Term protection: This specialized type of protection specifically covers parts and labor on all components that might wear out during the duration of the warranty, which extends for six years or 72,000 miles (whichever occurs first). The cost of this warranty includes wheel alignment, in addition to replacements for headlamps, belts and hoses, batteries, brake pads, bulbs, and fuses.
We need to highlight that two of these plans run concurrently with your factory warranty: Term protection and Audi Pure protection. That means that you’ll only use these warranties for the first few years if something breaks that is not covered by your factory warranty but is covered by the extended warranty.
So is the Audi vehicle service contract worth signing? The term protection option is likely worth it for everyone, assuming that you remember to use it when it comes time to replace the covered parts. The other two programs are only worth it if you’re going to be keeping your vehicle for quite a bit longer than the factory warranty covers.
Audi Factory Extended Warranty vs. Third-Party Extended Warranty
There are plenty of third-party extended warranty providers to choose from, but they all have one distinct advantage over Audi extended protection plans: Flexibility.
Third-party vendors allow you to take your vehicle to almost any repair shop, provided that they are licensed by a reputable association. Conversely, an Audi extended warranty requires that all repairs be done at an authorized dealership.
If you live near an Audi dealership, this might not be a big deal. However, if the closest Audi dealership is on the other side of town or the other side of your state, it might be a deal breaker. You’ll need to consider what works best for you.
You may have noticed that we aren’t mentioning prices in this Audi extended warranty review. When it comes to pricing, we’ve previously broken down how the cost of a vehicle service contract varies based on the VIN and mileage of the car in question. You’ll need to obtain several quotes to compare coverage before deciding which warranty is best for you.
What is Covered Under a Certified Pre-Owned Audi Extended Warranty?
The certified pre-owned Audi extended warranty coverage is based on exclusions. Most breakdowns that are related to a manufacturer’s defect will be covered, except for:
- Mechanical breakdowns covered by the existing manufacturer’s warranty
- Mechanical breakdowns caused by collisions, weather conditions, accidents, or vandalism
- Mechanical breakdowns caused by a lack of maintenance or pre-existing conditions
Their website directs you to contact a dealership for a detailed list of covered components. They do not provide this list from their website.
Do We Recommend an Audi Vehicle Service Contract?
Perhaps the biggest drawback of the Audi vehicle service contract is the lack of detailed information given to consumers upfront. The only information they make available on their website is a sale-focused page and legal statements to cover themselves for liability purposes. We’d like to see a document that dives deeply into what is covered on each of their warranty offerings.
So what is the outcome of our Audi extended warranty review? Overall, we are neutral toward the Audi extended protection plans. We cannot give them a confident recommendation based on the information they publicly provide.
If you’re looking for more options, we also offer vehicle service contracts through our partner. We offer transparent pricing and coverage options. Your costs are based upon your VIN and mileage, and we have a flat rate markup. We also offer a free consultation to discuss your options. Reach out to us today if you’re interested in the ways that we can help you stay protected on the roads.
Mitsubishi Extended Warranty Review
Mitsubishi is known for being a smaller automaker with intriguing cars. They craft quality vehicles, but mistakes still happen. That’s why we suggest purchasing an extended warranty to protect you from hefty repair bills. But is it best to buy one from Mitsubishi? We’ll help you decide in our Mitsubishi extended warranty review.
We’re about to go over the Mitsubishi extended warranty, including discussing who administers the program, the different plan tiers, and our recommendation.
The Highlights:
- Plan administered by Automotive Warranty Services, Inc., not Mitsubishi
- Four levels of coverage, but only one is available for new cars
- Coverage may vary based on the dealership you purchase the VSC from
- You can choose the term length and deductible
Is It Worth Getting a Mitsubishi Extended Warranty?
Before we can evaluate whether or not the Mitsubishi extended warranty is worth getting, we first need to examine what’s included in the warranty.
The Mitsubishi extended warranty is not actually administered by Mitsubishi. It’s administered by the same company that goes by four different names depending on which state you live in, mostly going by Automotive Warranty Services, Inc. We appreciate that this is disclosed in the sales brochure, but we don’t like the partnership with an unknown company.
There are four different plans offered by the Mitsubishi vehicle service contract. Only one of them is available for new cars; the rest are only available for used cars. The plans are:
- Platinum Plan. This plan is the only program available for new cars as well as used cars. This is an exclusion-based contract, and you can view the exclusions on their sales brochure on page two. All of the exclusions they discuss are standard practice for comprehensive extended warranties.
- Powertrain Plan. As you might imagine, this plan covers the engine, transmission, and drive axle components.
- Silver Plan. The second tier adds steering, front suspension, brakes, some electrical systems, and air conditioning.
- Gold Plan. The final tier of the inclusion-based contracts adds coverage for various components left out by the previous tiers, such as anti-lock brake systems, horn assembly, and the radiator.
It’s worth noting that these are the coverage terms discussed on the official sales material. However, we discovered that some dealerships have their own level of coverage. You’ll need to clarify with the dealership that you’re working with what coverage options they offer.
You’ll have your choice of term lengths and deductibles. These figures will also vary by dealership.
Based on the national sales brochure, all plan levels come with the following perks:
- 24/7 roadside assistance, including lockouts, towing, and fuel delivery
- Rental reimbursement for covered repairs, up to $35 per day up to 5 days
- Disappearing deductible, meaning there will be no deductible when your repairs are completed at the dealership that sold you the warranty
Notice how we aren’t discussing prices in our Mitsubishi extended warranty review? As we pointed out in a previous post about vehicle service contracts, prices vary based on VIN and mileage. That means that prices will be different for every Mitsubishi out there.
So, is the Mitsubishi extended warranty worth it? We don’t think so. Repairs must be completed at a Mitsubishi dealership, and there are only approximately 300 Mitsubishi dealerships in the country. There’s a good chance of issues occurring when you’re far from a dealership. Coverage seems thorough, but we don’t like how the coverage can change depending on the dealership. It’s probably worth skipping over the Mitsubishi extended protection program.
Mitsubishi Factory Extended Warranty vs. Third-Party Extended Warranty
Most third-party extended warranty providers try to copy the coverage of automakers’ extended warranties. While there are certainly differences in coverage, they are typically minor.
The main difference between an automaker’s warrant and a third-party warranty is where you can have the vehicle repaired. Even though the Mitsubishi extended protection plan is technically administered by a third-party, it is treated as an automaker warranty. This fact means that you can only have your vehicle repaired at one of the few Mitsubishi dealerships around the country.
Third-party extended warranty companies typically allow you to have repairs completed at any auto shop that is licensed by ASE or AAA. This policy means that you will be covered anywhere, from your neighborhood mechanic to the mechanic in a small town that you pass through on your road trip.
We typically advise people to obtain several quotes and compare coverage. This time, we think you should skip the Mitsubishi extended warranty and only obtain quotes from third-party warranty providers. The amount of Mitsubishi dealerships is just far too low, along with having different coverage based on the dealership you buy your plan from.
What is Covered Under a Pre-Owned Mitsubishi Extended Warranty?
There is no special mention in any of the information we’ve found about special coverage for Mitsubishi certified pre-owned vehicles. It appears as though they are lumped in with other used cars, which means they are eligible for all four tiers of coverage that we discussed above. If you’re planning on buying a CPO, make sure to get a pre-purchase inspection.
Do We Recommend a Mitsubishi Vehicle Service Contract?
What’s our ultimate opinion from our Mitsubishi extended warranty review? We do not recommend the Mitsubishi vehicle service contract. There is likely a better program out there for your needs. Having different coverage criteria based on where you buy the warranty is a massive drawback. We also don’t like how it’s administered by a third-party, yet you still have the limitation of having the repairs completed at a dealership. Our advice is to skip this warranty.
If you’re looking for another option, we’ve partnered with a vehicle service contract vendor to offer you great plans. All of their plans have clear coverage and transparent pricing. We’ll even include a free consultation call to help you pick the best warranty for you, even if it’s not our option. Reach out to us today to see how we can help.
3 signs you should walk away from a car deal
Undoubtedly, buying a car is one of the most challenging purchases you’ll ever endure (the key word here is “endure,” because it really can be a test of wills to buy a car). For many, purchasing a car, truck, or SUV is the second largest expense they’ll ever have, second only to buying a home. You’d think that spending such a large amount of money would be a happy and joyous occasion … The reality of buying a car couldn’t be further from that aspiration.
Buying a car is certainly a lot different than when I first started in the car business in the 1970’s. We’ve seen a lot of changes that are for the better (and quite a few that are for the worse), but no matter how you look at it, buying a vehicle is still one of the most frustrating things we have to do every few years. I sold cars for 43 years, and even I think the buying process is annoyingly aggravating.
That being said, there is a difference between getting annoyed, and getting taken advantage of, and my goal today is to help you avoid the latter. There are a few telltale signs of a shady car deal, and my hope is that you never experience any of them. That being said, there’s a strong likelihood that you will, and in an effort to help you protect yourself, I’ve written this guide.
Without further ado, let’s dive into the three signs you should walk away from a car deal.
The seller won’t show you a CarFax or reconditioning report
Regardless of if you’re purchasing from a private party or from a car dealership, if the seller of the vehicle won’t show you a CarFax report or the reconditioning repair work, that’s a sure sign that you should walk away from the car deal.
When car dealers buy used cars (either as trade-ins or from auction) they inspect them to make sure they are in good condition for sale. Typically this entails some “reconditioning” work. Reconditioning is the industry term used to describe the process of getting a vehicle “showroom ready”.
If a dealer won’t show you the repair order for the reconditioning work that’s a telling sign that you should walk away from the car deal. It begs the question “What is the dealer trying to hide?”
The same thing goes for when you buy from a private party. If they won’t share previous service records and an up to date CarFax, that’s a red flag and clear sign that you should walk away. Poorly maintained vehicles can be a seemingly endless money-pit, and you don’t want to be the one paying for a laundry list of future repairs simply because a seller didn’t maintain their car well or disclose to you issues it had that would be apparent on a CarFax.
This rule applies to purchasing vehicles from rental car companies as well. It’s well known throughout the automotive industry that the CarFax reports on rental cars can be lacking in detail. This is because CarFax collects information about every vehicle from their network of data providers. Rental car company owned repair shops are not a CarFax data provider, meaning CarFax is “in the dark” when it comes to a lot of the history of a rental car. That being said, it’s of the utmost importance that the rental car company shares with you the service records and reconditioning repair work done on a vehicle.
Another thing to recognize as a “red flag” is if the dealer adds an erroneous “reconditioning fee” to the selling price of the vehicle. The dealer’s cost to recondition the vehicle is already factored into the selling price, so an additional “reconditioning fee” is simply an attempt to make extra profit off of you. Again, this is a sign to walk away from the deal.
They won’t let you get a pre-purchase inspection
If the seller of the vehicle won’t let you get a pre-purchase inspection completed on the vehicle, this is a tell tale sign that you should walk away from the deal. Again, it begs the question “what is there to hide?”
Obviously if you are purchasing a new vehicle you will not get a pre-purchase inspection completed on a car, however for any used vehicle (even a certified pre-owned) you should consider a pre-purchase inspection, and if the dealer or seller won’t allow it, you should walk away.
Recognize that not every car dealership will allow you to drive a car to your mechanic’s shop to inspect the vehicle. This is different from them not allowing the inspection to take place at all.
Some dealerships have policies that restrict their willingness to move vehicles around to a mechanic’s shop for pre-purchase inspections. That being said, they should allow you to have the mechanic come on site, or be willing to take the vehicle to the mechanic’s shop if you put down a refundable deposit on the car. Some dealerships are nervous that if they take a car to a mechanic’s shop for a pre-purchase inspection they may miss a potential customer who is interested in buying the car while it is away.
During my 43 years in the business I never had an issue allowing a customer to get a pre-purchase inspection. I gladly endorsed it. Typically we would have one of our lot attendants drive the car to their mechanic’s shop to make it easier on the customer. If a dealer is unwilling to support your pre-purchase inspection desires, again, that is a sign to walk away.
They offer you different prices depending on if you finance with them or not.
This tactic, to offer two different prices that are dependent on you financing your vehicle with the dealership, is not only unethical, but counterproductive to being customer-centric. Advertising a price that requires a customer (you) to finance through the dealership so that the dealership can make extra profit is not illegal, but it’s certainly close to the line!
It’s well known that car dealerships make most of their money from the “back-end” of a car deal. This is where they sell insurance products (like an extended warranty), and originate loans. If the dealership where you are looking at buying a car wants to charge you more for the car if you have your own financing, to me, that’s a red flag.
This also applies to other insurance products (like extended warranties). Let’s say you’ve negotiated a price with your salesperson and you’re now in the F&I (finance and insurance) office. The F&I manager tells you that you can get an extra half of a point off of your interest rate on the loan if you buy their extended warranty. What do you do? You get up and walk away!
Tactics like these are simply signs of car dealerships that are looking to take advantage of their customers. Again, they’re not illegal, but they certainly toe the line.
Bonus fourth reason to walk away from the car deal: they charge ridiculous fees
Buying a car is the polar opposite of any other purchase we make. When you go to the grocery store and buy some cereal you pay the price of the cereal and sales tax, that’s it.
When you buy a car you pay for the price of the car, and then a laundry list of fees (some of which are legitimate, many of which are bogus). As a car buyer, how are you supposed to know what’s fair and legitimate, versus something that is purely dealer profit?
I’ve written about legitimate and illegitimate car dealer fees in the past, but it’s worth restating them here. Specifically stay away from dealers that try and charge you any of these fees:
- Nitrogen fees
- Reconditioning fees
- Additional destination fee
- Cash up-charge
What to Do at the End of a Car Lease
When it comes to the end of a car lease, you have a few different options for what you can do. To make the best choice possible, it’s important to understand a few factors that go into the different lease-end options you have at your disposal.
Deciding what to do at the end of a car lease depends mostly on how you feel about the car. Of course, your financial situation and inclinations also come into play. We’re about to explore each of the options available to you as your lease ends.
Looking for help with leasing a car at the best price? Let our team of expert Car Coaches take the hassle out of car buying and leasing. Here’s how we can help.
What to Do at the End of a Lease: Return the Vehicle
When you return your leased car, it will be thoroughly inspected, this is called the “lease-end inspection,” and it’s important to understand that you may be charged fees for excessive wear and tear to the vehicle. When you take your vehicle to the dealership they’ll be looking for:
- Scratches or dings on the exterior
- Cracks or other damage in any of the windows
- Any form of damage to the interior of the car, such as burns or rips
- Excessive wear on the tires
Before you head for the dealership, you should ensure you have everything that came with the car to avoid additional fees. This means you’ll want to bring both sets of keys, make sure the spare tire is in the trunk, have the original floor mats in the vehicle, etc, etc.
If you plan to simply return the vehicle, you should also be prepared to pay the lease disposition fee, which is often around $400 (although the exact amount is on your lease contract). This fee is to cover the costs of reselling your leased car, and if you plan to return your vehicle (and not lease another vehicle from the same manufacturer) you cannot get out of paying this fee. If you went over your mileage allotment expect to get a bill sent to you, and if you’re terminating your lease before it’s over, expect even more fees (as well as the reality that you’ll still need to make your remaining lease payments).
What to Do At the End of a Lease: Move Into a New Lease
Let’s say you want to return your car and then get a new lease. That is of course also an option, and one the dealership will be excited to help with. It’s likely that the dealership has contacted you in the months leading up to your lease-end to try and get you into a new lease already, and so by the time you show up to return your vehicle you may have already put together your new lease deal.
When you return a vehicle and then lease another from the same manufacturer they will waive the lease disposition fee. The vehicle you are returning will still need to go through a lease-end inspection, and you’ll face fees if you don’t have the second set of keys, or went over the allotted mileage.
You may be able to roll any lease equity over into a new lease as well. Lease equity is the positive equity created when your car is worth more than the residual value stated in your lease terms. Lease equity typically only occurs when you have severely under-driven the mileage stated on your lease, or when you simply get lucky because of an increased demand for your specific car.
For example, let’s say you lease a Honda Accord, and the stated residual value at the end of the term is $15,000. You lease it and barely drive it during the 36 month lease. You head to the dealership to return your current lease and move into a new Accord. When you arrive the dealership lets you know that the vehicle’s “book value” (how much they’re willing to buy it for) is $16,000. Rather than return the vehicle, you work with the dealer to buy it, trade it in, and roll over the equity ($1,000) into the new lease.
When leasing a car, many people decide to move into a new lease with the same dealership. While reasonable, you should shop around before jumping into another lease. Like we always preach, you should negotiate the largest dealer discount from MSRP before committing to a car deal.
What to Do at the End of a Lease: Buy the Car
If you’ve enjoyed your leased car you always have the option of buying it outright at the end of your lease. You know exactly how much you’re going to pay for the car (the residual value set when you signed the lease contract), and you know everything about the vehicle (since you’ve been driving it for the past few years).
The residual price is in your leasing contract and was determined based on their estimation of what your car would be worth at the end of the lease. Comparing the residual value against the current market value is often the deciding factor for people considering buying their leased car.
For example, John leases a Toyota Prius, and at the time the contracts are drawn up, the manufacturer calculates that the Prius will be worth 58% (residual values are always represented as percentages) of its original MSRP. That means John can buy his Prius outright, at the end of the lease for $17,000 (remember, this is a hypothetical). Because of market conditions, and the fact that John only put 18,000 miles on the Prius, he knows the vehicle is worth $20,000 if he sold it to a private party, or $18,500 if he sold it to the dealer. These figures mean John should almost certainly buy the car since it’s $1,500 cheaper than the market rate.
However, if John’s lease comes to an end and the book value on his Prius is actually $15,000, John would be paying an extra $2,000 over his Prius’ market value if he bought it outright at the end of the lease. In this case John would be better off turning in the leased Prius and buying one elsewhere for $15,000.
Leasing a Car or Buying – Which Is Better?
One of the most challenging decisions people face when considering what to do at the end of a car lease is often the same decision that originally led them to their lease: should you lease it or buy it?
There are pros and cons to both options. Objectively considering both will ultimately help you decide what to do at the end of a car lease.
Should You Buy the Car?
People decide to buy cars at the end of their leases all the time. There are many good reasons why. However, there are also a few notable drawbacks.
Pro:
- You have no restrictions on your driving habits (such as mileage allotments)
- Buying is often cheaper than leasing
- Monthly payments go directly towards owning the vehicle
Cons:
- You’ll end up owning an older car rather than continuing to lease new cars
- The value of your car will depreciate the longer you own it
- Monthly payments are often higher than leasing
Buying a car usually makes more financial sense than leasing a car. One benefit of purchasing the vehicle that you’ve been leasing is that you know exactly how it’s been driven and maintained, as compared to buying a used car off the lot.
Our Car Coaches are ready to help you determine which option is best for you. Our community saves thousands of dollars every day. Check out these uplifting success stories!
In case you missed it: Check out this 100% FREE car buying negotiation cheat sheet.
Should You Lease the Car?
Some people are serial car leasers. They’d never want to commit to owning the same car for longer than a lease. Let’s take a look at some reasons why.
Pro:
- Every few years, you get to have a brand-new car stocked with cutting edge features
- Your car is always under warranty, which can save you a lot of money on repairs
- Monthly payments are typically lower than financing
Cons:
- It’s more expensive than buying in the long run
- You’ll be given a yearly allotment of miles, and you’ll be charged if you go over it
- You don’t gain any equity since you don’t own it
You may notice that these pros and cons lists are quite similar to the lists you might make before you first got into a lease. That’s because deciding what to do at the end of a car lease is similar to deciding to start a lease in the first place: lease a new car or buy the one you’ve been driving.
Which Option Is A Good Fit for You?
Deciding between the three lease end options detailed above can often be tricky. It typically comes down to how you feel about the car. If you love the way it drives and you want to keep driving it, buying it is usually the best option, even if the numbers say you should turn it in. Conversely, if you dislike driving it and you’ve been counting down the days, it’s probably best to turn it in and walk away.
Now you know what to do at the end of a car lease, but you still have homework to do. You need to determine the car’s current market value and compare it against the residual price. The difference between these numbers will help you decide what to do at the end of a car lease.
