What is a Lease Buyout?

As your car lease ends, you have two options, return the vehicle to the Englewood dealership and settle the remaining fees or negotiate a car lease buyout. Yet what is the process of buying out a leased car? Buying out a leased car is when the dealership allows you to purchase your vehicle at or before the end of a lease contract for the price of its remaining value.

With two different lease buyout options, you might ask how to buy out a car lease. In the following guide, the finance team at Land Rover Englewood will explore what buying out a leased car involves.

Lease-End Buyout

So, what is the process of buying a leased car? The most common buyout option is a lease-end choice. This requires you to pay what your vehicle is expected to be worth by the end of the lease period. Normally, this price point is agreed upon before you sign the lease agreement. This is a good deal if:

• You’re happy with your vehicle
• There have been few to no repairs since you’ve had the vehicle
• There’s no other vehicle around Jersey City at a similar price point you prefer
• You can get a good interest rate to finance the buyout price

Another benefit of buying out a leased car this way is knowing the vehicle’s history and condition, unlike if you purchase a different used car.

Early Lease Buyout

By contrast, this option allows you to buy out a leased car before the end of your lease contract. Not every Fort Lee-area dealership allows this, so check beforehand if this is available. Before choosing an early lease buyout, you also want to be sure it’s worth the long-term investment to buy instead of lease. Keep in mind the vehicle’s history as near the end of the lease, its price is determined by:

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

On most occasions, New York City buyers choose this option to buy out their lease if they’re worried about lease penalties, including going over mileage, not maintaining scheduled services, or damages to the vehicle’s interior and exterior.

How to Buy Out a Car Lease – The Steps

If you plan to own the vehicle and believe a lease buyout is the best choice, what is the process of buying out a leased car? Here are the initial steps you can take:

• Speak to Your Leasing Institution: As you’re nearing the end of your lease, contact the institution you’re leasing with to ask about your options. They can answer how to buy out a car lease with them, including whether there are any fees associated with this.
• If You’re Financing The Buyout, Apply For Pre-Approval: Some New York City drivers choose to pay for their lease buyout in full if they’ve been saving up for it. Yet there are car lease buyout loans available. If you plan to finance your lease buyout, now is a good time to apply for pre-approval with several lenders to see how you qualify.
• Negotiate and Finalize The Buyout: There may be room to negotiate your lease buyout down to a lower price. Once you’ve settled on a price you feel comfortable with and secured financing, finalize your buyout.

Learn More Car Financing Tips From Land Rover Englewood

Now that we’ve explored the process of buying out a leased car, find the option that best works for your Jersey City lifestyle. At Land Rover Englewood, our team wants to find the ideal choice that works on the budget you set up. If you plan to explore new models, use our vehicle finder service to browse further. Explore all your car financing options at Land Rover Englewood!