Buying out a MINI lease could be a good move for some people, especially if the automobile has a reasonable buyout (residual) price. A few questions to ask yourself:
Do I see myself driving this car for the next five years? If not, a lease buyout probably isn't right for you.
Is the car priced well for the market? This is an easy question to answer. Look up other automobiles like yours on the used-car market, and compare those prices to your residual amount. If the residual is significantly lower than similar pre-owned inventory for sale, you may have a good deal on your hands.
Will this automobile have a reasonable cost of ownership if I do buy it? Most leases end around the same time as the factory warranty. So if you're considering a buyout, it would be a good idea to take into account the long-term repair cost history of a brand before making a final decision.
While many shoppers base the buyout decision solely on the selling price, a smarter move is to factor in expected long-term costs. Remember, you'll be responsible for covering the costs of maintenance, parts and repairs if something goes wrong.
Edmunds has a tool that will help you anticipate the costs of maintaining a leased car that you buy out. It's called True Cost to Own (TCO), and it is free to use. TCO will give you a five-year breakdown of what you can expect the auto to cost you in terms of parts and repairs, upkeep, fuel and depreciation.
