Lease Auo Purchase
I am planning to purchase my 2020 Honda Accord Hybrid at the end of my lease. The residual by out is too attractive to pass up. The vehicle has only 20,000 miles on it as workign from home has cut my driving significantly. I am a 63 years old and my question is how should I finance the buy out? I have enough money in a savings account to purchase the car or should I consider borrowing from my 401K or a coventional loan from a bank. My long range goal is to probably drive the car till late 2023 and then sell it outright to take advantage of the high resale rate .
Thank you
Terry Says
I would just pay cash if you have it. There are always hidden costs in finance deals.
Suddenly there is a sweet spot for lease buyouts, because used cars are in such demand. Three years ago when the lease started they set what they thought was a high buyout price. Turns out the price of used cars rose so much that they are now a sweet deal.
