If you are enjoying your leased vehicle and dreading the thought of returning it to the dealership, a lease buyout may be a good option to consider. What is a lease buyout? A lease buyout, sometimes referred to as a purchase option, allows you to purchase the car at the end of the lease instead of turning it in if your lease contract permits it.
Whether or not buying out a leased car is the right move depends on a lot of factors.
Mainly, you should consider the costs associated with a lease buyout and compare them with the cost of purchasing or leasing a different vehicle.
Wear, tear, and mileage can affect the value of the car, which you should keep in mind when considering a lease buyout. It may not be a good idea to buy out your lease if it's going to cost you more than the car is worth, which can happen if the car's actual value falls below the amount that would be required to buy out the lease.
You may be able to purchase the same year, make, and model for less elsewhere. Or, you may find the same car for the same price, but in better condition. That being said, buying a leased car can be a more streamlined and simpler way to owning a car, since the vehicle is already in your possession and you won't have to spend time shopping around or test driving.
Many finance companies offer drivers lease buyout options they can exercise once their lease is up, sometimes sooner.
The lease contract should detail your lease buyout options and the price, or method for determining the price, that would have to be paid to exercise the lease buyout.
Your leasing company may communicate to you your lease-end options toward the end of the lease. Before deciding to buy out the lease, you may want to check out other car buying options. Though it can be convenient to buy out a car you've gotten used to, you may be able to save money on the same make and model at a different dealership.
If you're wondering how to buy your leased car or how you plan to pay for it, get in touch with your dealer or lessor. There are finance options in the market designed specifically for lease buyouts that may work for you.
Buying a leased car is not for everyone. Some people may prefer to continue leasing new vehicles, and others may want to check out the used car lots for their next purchase. When making this sort of decision, it's best to weigh the pros and cons to determine the right move.
You have important options at the end of every lease. One option is to return your lease, settle on any lease-end contractual obligations and enjoy a new beginning, whether you lease or buy another car. The other option is to skip the shopping experience and pay for the car you already love. This buyout may even be a good deal if its price, based on the preset residual value, happens to be lower than the market value of your car.
