Thinking about buying your leased car? Learn how lease buyouts work in South Africa, which brands offer GFV options, and when buying your leased car makes sense.
Leasing a car is a great way to keep your monthly payments low and drive a new ride every few years. But what if you get to the end of your lease and don’t want to say goodbye? Fortunately, many leases offer the option to buy your car instead of returning the keys.
So, how does it work? And more importantly, does it make financial sense? Let’s break it down.
First, how does leasing a car work?
When you lease a car, you’re basically renting it for a set period – usually two to five years. Instead of paying off the full price of the car, you’re only covering its depreciation (how much value it loses over time), plus some interest and fees.
At the end of your lease, you typically have three choices:
Trade it in for a new one – If you like driving the latest models, this keeps things fresh.
Buy it – If you love your car and don’t want to let it go, you can buy it for a price set in your contract.
Walk away – If you’re ready to try something new, you can return the car and move on.
In South Africa, many manufacturers offer leasing programs with a Guaranteed Future Value (GFV). This means the car’s value at the end of your lease is locked in from day one, making it easier to decide whether buying it is worth it.
What’s a lease buyout and how does it work?
A lease buyout simply means you choose to purchase your leased car instead of returning it. The price is usually set in your lease contract, and is based on the car’s residual value (what the finance company predicts it’ll be worth at the end of the lease).
There are two ways this can happen:
End-of-lease buyout – The most common option, where you buy the car for the pre-agreed price.
Early buyout – Some leases allow you to buy the car before your contract is up, but there might be extra fees involved.
Which car brands offer lease-to-buy options in SA?
If you’re considering leasing with the option to buy at the end, here are some brands in SA that offer Guaranteed Future Value (GFV) programs:
Leasing gives you the chance to drive a new car every few years without the hassle of selling it later. With the Guaranteed Future Value model, you know exactly what your car will be worth at the end of the lease, making it easier to plan ahead. Whether you’re looking for reliability, affordability, or premium features, there’s an option to suit different budgets and driving needs.
Should you buy your leased car?
So, is buying out your lease a smart move? It depends! Here’s when it makes sense – and when it doesn’t.
Good reasons to buy it:
You love your car and don’t want to part ways.
The buyout price is a good deal compared to similar used cars.
You’ve taken good care of it, so you know its history.
You’ve exceeded your mileage limit and would rather buy it than pay excess fees.
Maybe not the best idea if:
The buyout price is higher than what similar cars are selling for.
The car has had issues, and you don’t want to deal with expensive repairs.
You’d rather get something new with a fresh warranty.
How to buy out your lease
If you’re thinking about keeping your leased car, here’s what to do:
Check your lease contract – Find the buyout price and any extra fees.
Compare the price to market value – Find out how much similar used cars are selling for to see if it’s a good deal.
Sort out your financing – If you’re not paying cash, look into financing options from your bank, dealership, or other lenders.
Review and complete the paperwork – Fill out all the required forms and make sure you really understand what you're signing, so that there are no surprises later on.
Make the payment – Time to settle up. Follow your leasing company’s instructions to pay the agreed buyout amount.
Transfer the title and registration – Once your payment goes through, it's time to make it official. Follow your local licensing department’s steps to transfer the title and update your registration in your name.
Buying out your lease can be a great way to hold onto a car you love while avoiding the hassle of shopping for something new. But before signing on the dotted line, compare prices and make sure it’s the best financial move for you.
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