How to get ready for the end of your car lease

When there is only a certain amount of time left before their lease expires, many drivers wonder about their options. Reflection all the more complex in these exceptional times.

Between leasing a new Volvo, buying back his current lease or even selling his vehicle, the driver's heart can swing for a long time. If any change brings its share of complexity, it is also an opportunity to ask the questions that matter in order to be ready for the end of your car rental.

1- Return your current vehicle and lease a new one

If peace of mind is your top priority, returning your current lease to take possession of a new vehicle is probably your best bet. You will thus be on the road with a new vehicle that will only require regular maintenance on your part.

In addition, we invite you to consider market conditions in your renewal process, such as inflation, interest rates and vehicle availability. Although you could have many months left on your current lease, it could be to your advantage to change vehicles without delay.

Your advisor is your best ally in discussing your options. Communicate with him in order to take your pin of the game.

2- Buy back your current vehicle to keep it

While buying back your vehicle is a viable option, it comes with its own set of unknowns. You will of course continue to drive the vehicle you know well, but it will inevitably age. As a result, your maintenance costs are very likely to increase over time.

By assuming the maintenance of your vehicle, you expose yourself to inopportune mechanical breakdowns; something you don't have to think about when leasing.

Also, if you are betting on reselling the vehicle in a few months, keep in mind that the current values ​​of pre-owned vehicles may not be as high as you hoped. In short, you may well find yourself in a less advantageous situation when it comes time to make the jump.

If buying back your vehicle is your preferred option, you will be able to finance the buyback when you return your vehicle. You will also have the possibility of adding a manufacturer's certification in addition to other protections designed for pre-owned vehicles; all to hit the road in peace.

3- Buy back your current vehicle to resell it to an individual

If your car is in good condition, some will advise you to sell it yourself rather than handing in your keys to the dealership and driving away with a new vehicle.

This idea is all the more attractive if you have seen a car similar to yours on the market whose price is higher than the value of your buy-back option. The gain generated on the sale can thus be used as a down payment on your next vehicle. Simple ? Not necessarily.

Never underestimate the time and effort it will take to find a serious buyer. In addition to negotiations to obtain the value you covet for your vehicle, you will have to make yourself available for your buyer to have the vehicle inspected at a garage of his choice.

You will then have to go to the SAAQ to complete the transfer of titles. Consider in your price the sales taxes that your buyer will have to pay once at the counter and for which you will have to provide them with the necessary documentation.

Importantly, if the transaction is not compliant, your buyer is entitled to demand payment of said taxes under penalty of withdrawing from the transaction without notice. You are ultimately responsible for paying taxes and you may be subject to penalties in the event of non-payment by the buyer. Only then can you really start shopping for your new vehicle.

In short, regardless of the preferred avenue and the time remaining in your rental lease, we invite you to contact our team to explore your options. Informing yourself today will allow you to properly plan your transition to your next vehicle and to be adequately prepared when you decide to move forward.