If you have leased your vehicle in Aurora, you have a few options when that lease comes to an end. You can simply bring the vehicle back to the dealership and take care of any fees that may still remain, or you can choose a car lease buyout. What is a lease buyout? This is when a dealership allows you to purchase a vehicle at or before the end of a lease contract for the price of its remaining value. Now that you have this lease buyout definition, you may be asking, “How does a lease buyout work? There are two different types of car lease buyout options, and we will discuss both of them below so you can make a more informed decision.
Lease-End Buyout
Your first option is a lease-end buyout. This is the most common car lease buyout for Parker drivers. When you opt for a lease-end buyout, you will have to pay what the vehicle is expected to be worth when your lease is set to come to a close. In most cases, this amount will be already agreed upon in your lease contract. Is a lease-end buyout the right choice for you? This car lease buyout is ideal if:
- You love the vehicle you have
- The vehicle has required minimal work so far and is in good condition
- There is no other vehicle available at a comparable price that you would prefer
- You are able to secure an excellent interest rate
What else makes this car lease buyout option so appealing to Castle Rock drivers? If you are not looking to purchase a brand new vehicle, it is nice to know the history of the car you plan to purchase. That would not be the case with a different used car that you are not already familiar with.
Early Lease Buyout
How does a lease buyout work if you want to purchase the vehicle before your lease is up? Some lease contracts do allow this, but not all of them do, so it is important to check in advance. Near the end of the lease, the price is determined by:
- The lease-end residual value on your original contract
- The amount you still owe on the lease
Keep in mind that if the vehicle has depreciated quicker and is below market value, you could be on the hook for the difference. If your vehicle has sustained excess wear and tear and you are worried about penalties, this may be a good option for you.
How Does a Lease Buyout Work?
- Contact your leasing institution. When the end of your lease is approaching, reach out to the financial institution you are working with to see what your options are for a car lease buyout.
- If you’ll be financing the buyout, apply for pre-approval. If you plan to finance your lease buyout, getting pre-approved in advance can save you time and hassle.
- Negotiate and finalize the buyout. There may be the option to negotiate the price of your car lease buyout in some cases.
Contact Lexus of Greenwood Village Today
Are you still wondering, “What is a lease buyout?” Do not hesitate to reach out to the finance experts at Lexus of Greenwood Village. We would be happy to answer any questions you may have. You can also check out our helpful finance tips and tricks for more information.
