kobrapack9

well i wanted to purchase my car but because of my credit it was cheaper to lease. the dealer said that i am able to purchase the vehicle at any time. i was wondering if i pay more than the payment requires a month (until i find a credit union that will give me an reasonable APR), will the money come off the total price of the car or will it shorten the lease term. i do not want to wait until the end of the regular lease term of 4 years and owe 21,000. if i pay a 1000 a month will my car be payed off buy my lease is up? how does this work? i asked the dealer and he told me something different than someone else. if anyone knows, i'd appreciate it. thanks

dstopsie

Paying more than your scheduled lease payment will not reduce what you can purchase the car for later. A lease is a contract, you are basically renting your car for a specified term at a specified price. At the end of your contract you have the ability to purchase your car at the residual value of the car plus you have to pay tax on it. I guess you could contact a credit union or some other lending institution to find out if you can pay off your lease and roll it into a loan. I personally think you should only lease with the intention of not purchasing the car because once you have paid your payments of four years, you can end up having to pay $25K plus to purchase a four year old car that is out of warranty. Just my opinion,..I personally want a new car every 3-4 years and i have chosen to lease cars for the last 12 years for this reason. And it is cheaper to lease than purchase, i just dont want to purchase an automobile anymore. Contact your financial institution and see that they can work out with you. And contact whoever holds the lease on your car and find out if you can purchase the car at any time. Also read the fine print on your lease contract too.

kobrapack9

ok, thanks. makes sense.