What to do when your lease is almost up…
When customers reach residual, they can purchase the vehicle for the residual amount found on the first page on the contract they initially signed. If the customer cannot locate their paperwork, a payment coach can assist. Most residual amounts are under $3,000. The vehicle will need an inspection sticker which is the responsibility of the customer; however, the company requires a copy. Payment will need to be taken by cash, money order or credit card. The customer will have to sign paperwork for a cash sale. Sales tax and registration is not included, so it is the responsibility of the customer to pay the company for that as well. The company registers the vehicle for customer convenience and the license plates can remain on the car. It is a fairly easy process.
A second option would be to finance the residual. It is up to the payment department to determine whether a customer is a candidate for this option. The financing company for this is our standard buy here pay here program. The payment amount would remain the same as the leasing and as frequently as that loan as well. A vehicle inspection is required for this which is the responsibility of the customer. The customer may be responsible for sales tax and registration fees. Depending on approval from the payment department, the sales tax and registration fees could be included in the loan.
The final option for a lease buyout is if the customer wants to return the vehicle. Customers may turn in the vehicle and get into another. Depending on their credit improving, an outside finance loan is possible. Most for this option are another lease. It is possible to walk away from the company completely, but if the mileage has exceeded, there may be a cost to the customer.
The customer’s payment coach is best suited to start the customer on this buyout process.