Buy out lease, or turn it in?

[muzicman0]

I have a 2019 Ranger XLT Sport that I leased. The lease is ending soon (last payment is in May). The buyout is slightly less than $24k. I like the Ranger, and I have added a Hard Tonneau cover, rails, and a few other things (like a tail gate dampener - GASP!). I think I want to go ahead and buy it out and keep it, but thought I would check and see what others opinions are.

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[NTXTremor]

How many miles are on it? I am assuming that if it is a lease, you are at less than 48k miles. I would tell you that in today's market $24k for your truck is a bargain. If you turn it in, they will turn around and sell it for over $30k almost certainly.

I am normally against buying out leases since you are normally under water or close to it, but unless you are looking to drive something new or different, I would buy it. The new and used market is crazy right now.

 

[Jon Olivier]

I'm in the same boat. I enjoy my truck and will be purchasing it when the lease runs out next year. If you don't have any issues with it, I'd lean towards buying it.

 

[AzScorpion]

If you really like the truck I would buy it out. Like Mark @NTXTremor said you wont find a price like that today and you already know the history of the truck. My girlfriend will be going through this next summer with her Honda Civic. Her lease ends next August and she really doesn't need the car but I want her to buy it. WIth these crazy prices today she could turn around and sell it for a profit if she decides not to keep it. It's better than giving it back to the dealer and letting them flip it for more money.

Besides the damper will be worth $20K of that lease buyout. ?

 

[D Fresh]

Even if you don't like the truck you should buy it.

You'd be taking advantage of that low residual buyout that was set two years ago. Even if you want something else you should buy the Ranger and sell/trade it.

 

[AdamHarris]

So dealers actually have to honor an original set buyout at the end of a lease? They can't just jack up the buyout $$ based on the current market? I have never leased.

 

[Motorpsychology]

Even if you don't like the truck you should buy it.

You'd be taking advantage of that low residual buyout that was set two years ago. Even if you want something else you should buy the Ranger and sell/trade it.

Caveat: Read your lease agreement carefully. there is a clause in there about an agreed upon purchase price either at the time of lease inception, usually a set price, like Lease End Value plus XX$ or XX%, or, At a price to be determined at lease end. That covers both Ford and the dealer against market conditions

 

[muzicman0]

less than 19k miles. I have already contacted US Bank (Lease holder), and the buy out is accurate. I already have the quote in hand. I agree with most of the comments here, and like I said, I was leaning towards purchasing at the end. I had thought about purchasing, then turning around and selling, but I would still have to buy something. since I like the truck, I will probably keep it for a while at least.

Thanks everyone!

 

[Toytec]

Cheaper to keep 'er. I say buy it! BTW, I like the color of that house you're parked in front of. Picked it for my own coming soon.

 

[Peragrin]

So dealers actually have to honor an original set buyout at the end of a lease? They can't just jack up the buyout $$ based on the current market? I have never leased.

The lease agreements generally state a buyout at the end of the lease, based on estimated value at that time. Normally this is a number that is very much in the banks favor. hence why buying out a lease is questionable.

In today's market with a used 2019 ranger with 45k going for $30k it is very much in the leasee's favor. even if all you do is buy it out for a month and then turn around and trade it in you are in way up.

 

[muzicman0]

In today's market with a used 2019 ranger with 45k going for $30k it is very much in the leasee's favor. even if all you do is buy it out for a month and then turn around and trade it in you are in way up.

My thoughts exactly. And since I only have 18,600 miles, and with my specific options and location (SoCal), KBB lists the trade in value at over $37k. Private party is $40,700.

Just seems like a no brainer to buy it out.

 

[Langwilliams]

So dealers actually have to honor an original set buyout at the end of a lease? They can't just jack up the buyout $$ based on the current market? I have never leased.

For the most part they have to. There are also "open end leases" where the buy out is determined at the end. I've never had one or sold a car on one but I've heard of them. With the open lease you might get a refund at turn in if the wholesale value exceeds the turn in price or if it tanks you have to pay.

On a lot I'm sure your truck would sell for over 30K so I'd buy it.

 

[Joeiconic]

Buy it if you like it. That’s a good deal.

 

[rang19ca]

Buy it out. You will be money ahead.

 

[RedlandRanger]

My lease is coming up in less than a month and I'm going in tomorrow to buy it out. I love the truck so will be keeping it but even if I wanted to sell it I could probably make 10k+ if I were to buy it and then turn around and sell it due to the crazy market. The problem is that I'd have to buy something else and most likely pay some inflated price.

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