What Does a Lease Buyout Entail?

Nearing the end of your car lease in the Matthews area? Traditionally, drivers who are leasing their car will simply return it to the dealership and settle any remaining fees when the lease is about to expire. However, if you’re ready to pursue car ownership and you don’t want your next purchase to be another lease, you may be able to get a great deal by pursuing a car lease buyout! What is a lease buyout? Hendrick Chevrolet Monroe explains the process for Monroe drivers preparing to make their next move. 

What is the Lease Buyout Definition?

The lease buyout definition is pretty simple. At the end of a car lease, instead of turning in the keys, Waxhaw drivers can choose to purchase the vehicle for the price of its remaining value at lease-end. 

What is a Lease-End Buyout? 

There are two types of car lease buyouts. The first is a lease-end buyout, which is the option most Weddington shoppers will choose. A lease-end buyout entails waiting until the planned lease-end date to purchase the vehicle. The price paid for the vehicle will be whatever it is currently valued at—this number is usually worked into the original lease contract. 

A lease-end buyout may be a smart option if:

• You enjoy the vehicle enough to continue driving it for at least a few more years
• There were no major repairs needed during the lease period (outside of routine maintenance like oil changes and tire rotations)
• You haven’t found a brand-new vehicle at a comparable price point that you would rather purchase 
• You’re able to get a favorable interest rate on a lease buyout loan

A lease-end buyout is a great way to save on a car purchase if your ultimate goal is to own a vehicle! You’ve already paid for a large portion of the vehicle and you can have total confidence in the mechanical condition because you’ve been the only one driving it the past three years. 

What is an Early Lease Buyout? 

How does a lease buyout work if you purchase the car before the lease is over? This is known as an early lease buyout. It’s less common and some lease contracts don’t even allow it. Drivers will sometimes consider an early lease buyout if they haven’t maintained the vehicle, have exceeded the mileage limit, or if they’ve damaged the vehicle and are worried about incurring penalties at the end of the lease. Because the leased vehicle would be purchased before the contract expires, the price of an early lease buyout is figured a bit differently, based on:

• The lease-end residual value on your original contract
• The amount you still owe on the lease
• If the vehicle has depreciated quicker and is below market value, you might have to pay the difference

How Does a Lease Buyout Work? 

• Start a conversation with your leasing company. When your lease is about to end, reach out to your leasing company to find out if a lease buyout is possible. They’ll let you know how to move forward and whether you should be prepared for any lease buyout fees. 

• Secure financing. If you intend to get a car lease buyout loan, you will want to apply for pre-approval to start the process so you’re ready to go when the lease ends. To keep things simple, you may want to consider getting financed through the same dealership you’ve been leasing with. 

• Negotiate and finalize the buyout. You may be successful in negotiating a lower price for your car lease buyout. Once you’ve reached a price you like and secured financing, all that remains to be done is finalizing the buyout! 

Explore Your Options at Hendrick Chevrolet Monroe

Can’t decide whether leasing or financing is right for you? The finance center at Hendrick Chevrolet Monroe can help you compare your options to narrow down the best choice for your budget. Whether you choose to do a lease buyout or you are hoping to lease a car with bad credit, we’ll work hard to get you behind the wheel of a vehicle you love!