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Should you buy your leased car?

Tara Baukus MelloQuestionDear Driving for Dollars,
My lease is almost up on a car that I love, but the buyout price seems high. Should I buy it or should I lease another one?
-- Toby

AnswerDear Toby,
If the automaker is currently offering a subsidized car lease, you may be hard-pressed not to lease the new model. Keep in mind that if you do, you are essentially renting the car. You don't own anything at the end of your payments. There's much data that shows that buying a car is cheaper in the long run because you end up with a car that has a value after you've completed your payments.

Buying your leased car is essentially buying a used car whose history you know. If you've taken good care of the car and you are ready to buy instead of lease another, it makes good sense to try to buy your car. Follow these tips to get the best deal on your lease buyout.

Ask the adviser

If you have a car question, e-mail it to us at Driving for Dollars. Read more Driving for Dollars columns and Bankrate auto stories.
 

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48 month used car loan
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36 month new car loan
2.29% 2.30%
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