What is a Lease Buyout?

Finance Paperwork with Glasses

 

If your current vehicle lease is due to expire, you may be wondering about your options for keeping the vehicle once the lease term is up. In most cases, you can negotiate a car lease buyout and become the legal owner of the vehicle. But how does a lease buyout work? Our finance team at Short Redmond SuperStore breaks it all down for you below.

Car Lease Buyout Definitions

Lease-End Buyout

The most popular car lease buyout option, a lease-end buyout involves paying the dealer what the vehicle’s expected value will be at the end of the lease term. In most cases, this value will be stated in your lease agreement. A lease-end buyout is a smart move when these conditions are present:

  • You’re satisfied with the vehicle, it meets your needs, and you want to be its lawful owner
  • You’ve made little or no repairs to the vehicle throughout the lease term
  • You haven’t found another vehicle you like more
  • You can obtain a manageable interest rate if you’re planning on financing the car lease buyout cost

Early Lease Buyout

An early car lease buyout gives you the opportunity to purchase the vehicle before the lease term is up. Be sure to consult your lease agreement to see if this is an option, as not all lessors allow early lease buyouts. Ask yourself these questions to determine if an early lease buyout is right for you:

  • Does the vehicle meet your needs and is it worth a longer-term investment?
  • Are you concerned about exceeding mileage limits?
  • Do you want to customize the vehicle with accessories or upgrades?
  • Has the vehicle been damaged or missed scheduled services?

If you can answer “yes” to any of these questions, an early lease buyout is worth exploring.

How Does a Lease Buyout Work?

Start the car lease buyout process by talking to your lease provider. They can go over your options with you, inform you of any fees, and guide you through the steps involved.

Financing your lease buyout? Get pre-approved so you know what rates and terms you qualify for and can better understand what your long-term financial commitment will look like as you pay off your vehicle.

Finally, negotiate the buyout price with the lessor, if possible. Once you’ve come to a mutually agreeable price, finalize the offer, and your vehicle will legally be yours. Take to Richmond and Winchester streets with confidence!

Lease Your Next Vehicle at Short Redmond SuperStore

Whether you have questions about car lease buyouts or are in the market for a vehicle to lease, Short Redmond SuperStore is here to help. Contact us today for more information or stop by our Lexington showroom; we’re just a short drive from Danville. We encourage you to browse our car-buying tips so you can navigate your shopping experience with ease from start to finish!

 

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