What Is a Lease Buyout?

Do you love the vehicle you’re leasing so much that you’re not ready to return it to the dealership? If you do a car lease buyout, you don’t have to! What is a lease buyout? The basic lease buyout definition is a transaction during which a lessee can purchase the vehicle they’ve been leasing for the price of its lease-end value, effectively making them the full owner of the vehicle. A car lease buyout can be a great way to reach your goal of car ownership without taking on an expensive monthly payment. There are two car lease buyout methods to consider; learn more about how they work in the guide below!

Method 1: Lease-End Buyout

Most Morrisville and Apex drivers will be interested in a lease-end buyout. This method involves waiting until the natural end of the lease to purchase the vehicle from the dealership. The price to be paid will be the remaining value of the vehicle once all lease payments and lease-end fees are taken care of. Typically, the lease-end value is worked into the original contract, so it should be pretty easy to estimate how much you will pay before you get to the dealership.

Could this be a good car lease buyout option for you? It can be a fantastic deal if:

• You have no complaints about the vehicle
• During your time leasing the car, it required no major repairs
• You haven’t found a newer vehicle you like for a similar price
• You’ve qualified for a good interest rate on an auto loan

If you dream of owning a vehicle rather than leasing but you don’t want to invest in a brand-new ride, a car lease buyout can bring you pre-owned pricing with the added bonus of knowing the car’s complete history since you were the one driving it.

Method 2: Early Lease Buyout

What is a lease buyout called if you don’t want until the end of the lease? Although less common, this may be an option for some Durham drivers; it’s known as an early lease buyout. The purchase price of an early lease buyout can be difficult to predict, but it’s typically based on:

• The remaining amount to be paid on the lease
• The lease-end value of the car
• The difference between the estimated value and the actual value at the end of the lease, if applicable

An early lease buyout isn’t as advantageous as a lease-end buyout and it may come with early lease termination fees. Typically, it’s only considered by drivers who are worried about lease penalties like exceeding their mileage cap or damaging the vehicle.

How Does a Lease Buyout Work?

If you’ve reviewed the above methods and decided you want to move forward, how does a lease buyout work? You can get started by taking these steps:

• Find out if a buyout is possible. Some leasing companies don’t allow car lease buyouts, so the first step is to contact them and ask about it. They’ll let you know how to move forward and can provide insight into any lease buyout fees that may exist.
• Apply for financing if applicable. Often, it’s easiest to apply for financing through the dealership you were leasing with. However, you can also look into lease buyout loans with outside institutions.
• Negotiate, finalize, and drive home! You may have room to negotiate your lease buyout down, but depending on the circumstances the price may not have much wiggle room. Once you feel comfortable with a price, you will finalize the buyout and drive your car home. This time, you’ll be taking it home as the owner!

Explore Your Options at Hendrick Cadillac Cary

Care to learn more about lease buyout options at Hendrick Cadillac Cary? Contact us or stop by our dealership’s finance center in Cary to learn more! We’re here to help you purchase the car you love at a price you feel great about.