Last week, I had two clients ask for advice on buying a car. Both are retirees, one sees themselves driving 3 more years, the other, maybe 10 more years. My advice to them starts the same – figure out the make, model, and options you want, then look for a lease return car to buy. We have been buying lease return cars for years – let me tell you why.
When people lease cars, they have to keep up the maintenance and appearance of the car, as well as keeping the mileage low. If the car is not maintained, and the mileage goes over the contracted amount, the lessor ends up paying a huge price to get out of the lease. Buying a lease return can get you a practically new car without the new car price. All of the depreciation that occurs when driving a new car off the lot is no longer an issue, and many of them still have factory warranties. The price you would pay for a lease return is thousands less than buying new. I also love going to the “no haggle” type dealerships because it tends to level the field a bit.
Do your homework, know what you want, and what you are willing to pay. You may want a specific car, but don’t let a dealer think you need something different.