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Dumb question...what does lease with option to buy mean?
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alnem
This is gonna be a good year!
Member since 2/06 9562 total posts
Name:
Emily
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Dumb question...what does lease with option to buy mean?
Does that mean you can sell the car and pay off your balance?
DH's car is a lease with an option to buy and we realized the other day that on the bill it says "pay off balance $XXXXX. Does that mean he can sell it? I thought it was a lease?
Sorry if thats a dumb question...
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Posted 11/7/06 7:00 PM  |
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Long Island Weddings
Long Island's Largest Bridal Resource |
HollaGirl
Merry Christmas !!!
Member since 10/06 3308 total posts
Name:
Kristen
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Re: Dumb question...what does lease with option to buy mean?
It just means he can buy the car at the end of the lease, that's really it. It makes no sense really, because if I wanted to keep the car, I would just finance it.
Message edited 11/7/2006 7:01:45 PM.
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| Posted 11/7/06 7:01 PM |
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ChilisWife
God Bless America
Member since 5/05 3572 total posts
Name:
A.K.
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Re: Dumb question...what does lease with option to buy mean?
you can't sell it until you buy it, which is the $XXXX price. If you pay the $XXXX price then you own the car (the lease terminates and you have no more lease payments because you essentially paid them all out up front). after you own it then you can sell it to a third party.
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| Posted 11/7/06 7:02 PM |
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alnem
This is gonna be a good year!
Member since 2/06 9562 total posts
Name:
Emily
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Re: Dumb question...what does lease with option to buy mean?
Posted by ChilisWife
you can't sell it until you buy it, which is the $XXXX price. If you pay the $XXXX price then you own the car (the lease terminates and you have no more lease payments because you essentially paid them all out up front). after you own it then you can sell it to a third party.
essentially, isnt that the same as financing it? i mean, if you finance you cant sell it and transfer the title till you pay off your balance. whats the difference? is it that your monthly payments are less in a lease with an option to buy and you have that final balloon payment at the end?
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| Posted 11/7/06 7:04 PM |
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HollaGirl
Merry Christmas !!!
Member since 10/06 3308 total posts
Name:
Kristen
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Re: Dumb question...what does lease with option to buy mean?
Posted by alnem
Posted by ChilisWife
you can't sell it until you buy it, which is the $XXXX price. If you pay the $XXXX price then you own the car (the lease terminates and you have no more lease payments because you essentially paid them all out up front). after you own it then you can sell it to a third party.
essentially, isnt that the same as financing it? i mean, if you finance you cant sell it and transfer the title till you pay off your balance. whats the difference? is it that your monthly payments are less in a lease with an option to buy and you have that final balloon payment at the end?
At the end of a lease, you have to pay the balance in full in order for the dealership to transfer the title to you. When you finance, you own the car AS you are paying for it. It's a loan.
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| Posted 11/7/06 7:06 PM |
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