When Your Lease Reaches the Finish Line
If your lease is coming to an end, it's time to decide whether you're going to trade-in your vehicle or buyout your lease. And, with the value of used vehicles up, you might be surprised to see that you could buy the car for less than it’s worth on the market!
There's a few things to consider before you decide, and we've got a few tips that can help.
Research Your Vehicle Value
First things first. Check out the trade-in value of your car based on mileage, wear and tear, and other specifics to your car. We suggest checking out kbb.com, they have an easy-to-use online tool that only takes a couple minutes.
Get a Buyout Quote
Next, contact your leasing company and request a Buyout Quote. This is usually just a quick phone call or online lookup.
Determine Your Vehicle's Value Versus Buyout Price
Check the buyout price (don't forget to doublecheck buyout related fees) versus the market value. If your vehicle’s value is more than your buyout price (it likely is), then you’re in good shape!
Completing the Buyout Process
Once you’ve decided buying out your lease is the best option, it’s time to get the funds! Arrowhead has several auto loan options to choose from with rates as low as 1.99% APR1 or terms up to 84 months.2
Once you’re approved for an auto loan, our lending department will work with you to help you pay off your lease, and you’ll be all set!
When Trade-In is the Right Option
Is your car in need of any major repairs in the near future or do you plan to get a new car soon? If either of those are true, you may want to visit a dealership to find out your trade-in options.
Often times, if you go to the same vehicle maker that is currently leasing your car, they’ll make a deal with you to trade it in for a new car, but keep in mind car prices are on the rise right now, which means you may be buying/leasing another car with a hefty price tag. The dealership can also charge trade-in fees for things like the condition of vehicle, mileage overages, and more.
Either way, if trading in your car seems like the best fit, take your car to the dealership to work out the lease trade-in details.
If you decide you'd like to buy your next car, rather than lease it, it's a good idea to get approved first. You'll know how much you can spend, and you'll walk into the dealership with some negotiating power for your new purchase.
1APR=Annual Percentage Rate. Best rate is for term of 36 months and lowest rate for each term includes all available discounts including a .25% discount for automatic payment from an Arrowhead account. Higher rates apply for terms longer than 36 months. Current Arrowhead loans are not eligible for refinancing under these rates and terms. Rates may vary based on individual's credit history and underwriting factors. Not all borrowers will qualify. Payment example: a 36 month loan at 1.99% APR would have monthly payments of $28.67 per $1,000 borrowed. Rate and terms subject to change without notice. Some restrictions may apply. Rates valid as of 7/1/2022.
2 Restrictions may apply.