My EcoSport at lease end: Should I buy it back at 7.1 lakh or let it go

With all my financial calculations, it appears that I should buy the Ford but I could be wrong.

BHPian kmsithan recently shared this with other enthusiasts.

I have taken a company lease and bought the Ecosport S in 2019. The lease period is getting over by the end of this month (Jul 2022).

I am looking for advice to buy back the car or to leave it to the leasing company and exit the contract.

The car

  • Ecosport 2019 S
  • Variant: EcoBoost
  • Engine: Three-pot engine produces 123 BHP / 10 NM torque
  • Features: 6 airbags, Auto wipers, Auto headlamp, Sync 3 etc

My usage and the second car

Daily commute to office and some highway drives. 20K kilometers per year.

I have my wife’s car (Celerio X AMT) sitting idle at home as she is not using it anymore.

The lease

Lease covered 3 years of maintenance, insurance and provided tax benefits for the leasing amount and for fuel/driver expenses.

The confusion

With all my financial calculations it appears I should buy it (maybe I am wrong). I have the below questions.

  • Is the car worth buying at 7.1 lacs?
  • Should I go for a second-hand car of my choice instead of taking the EcoSport?
  • Considering Ford exited India, can I resell it later without loss when I want to upgrade my car?
  • If I leave the car to the leasing company and buy a new car, obviously I will be spending big bucks. So is it better to buy?
  • I have shifted from KA to TN and the car is registered in KA. While it may not be a problem to drive KA in TN (I will be frequently visiting KA), it would be ideal to have a TN car at the TN residence.
  • Should I sell Celerio and leave this car to the leasing company?
  • Should I buy back the Ecosport and sell the Celerio as it is not being used?

Here is my calculation of expenses and savings if I buy back or leave it with the leasing company.

Here’s what BHPian itsmeparvathy9 had to say about the matter:

I will answer your questions one by one.

  • Is the car worth buying at 7.1 lacs?

Yes, I think it is worth buying the car for Rs.7,15,778 considering it’s just 3 years old.

  • Should I go for a second-hand car of my choice instead of taking the EcoSport?

Although Ford has left India, considering that you get a car that’s just 3 years old at this price and considering that you most probably won’t be getting a 3-year-old SUV in the used car market at this price, I suggest you keep your EcoSport.

  • Considering Ford exited India, can I resell it later without loss when I want to upgrade my car?

This depends on the time horizon you are willing to keep the car. If you are willing to keep it for longer, you would derive more benefits from your car. If you are going to sell it in a short span of time, considering the amount you are paying to buy it, I don’t think it would amount to too much loss.

  • If I leave the car to the leasing company and buy a new car, obviously I will be spending big bucks. So is it better to buy?

Absolutely not.

  • I have shifted from KA to TN and the car is registered in KA. While it may not be a problem to drive KA in TN (I will be frequently visiting KA), it would be ideal to have a TN car at the TN residence?

Yes, if you are staying in TN, it would be better to reregister to TN.

  • Should I sell the Celerio and leave this car to the leasing company? Should I buy back EcoSport and sell the Celerio as it is not being used?

The EcoSport is a better car, and I wouldn’t recommend leaving it to the leasing company. On selling the Celerio, it depends whether you can find a use for it, else sell it off.

Here’s what BHPian jkrishnakj had to say about the matter:

When you say ‘should I buy at 7.1’, does it mean that’s the residual value that you have to pay in order to own the car?

My experience leasing 3 cars from my company each for 3 years, over the past decade has been good. Each time, I’ve managed to pay the residual value, transfer ownership to my name and then, sell immediately. Whilst for the buyer, it technically becomes the third owner, I still was able to sell at values that made money to me.

I stopped the lease option after GST came in. Till then, it was wonderfully good.

Here’s what BHPian thanixravindran had to say about the matter:

The combination of a manufacturer that has exited the country and re-registration expenses in TN (Road tax calculation is atrocious) will make it unattractive to buy back this car. My suggestion is to let it go.

Check out BHPian comments for more insights and information.

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