What is a Lease Buyout?

What is the lease buyout definition? Firstly, when your car lease is about to expire, you have two options:

• You can return the vehicle to the dealership and settle any remaining fees. 
• You can negotiate a car lease buyout. 

What is a lease buyout? The basic lease buyout definition is when a dealership, like Aristocrat Motors Topeka, allows you to purchase a vehicle at or before the end of a lease contract for the price of its remaining value. There are two different types of car lease buyout options to choose from, and it’s important to know your options. Take a look at the different car lease buyout types to see which works best for you. Then, make your way to Aristocrat Motors Topeka near Topeka.

End-of-Lease buyouts

This option is the most common among Topeka leasers. According to this lease buyout definition, you’re required to pay what the 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 choice is a good deal if:

• You’re happy with the vehicle.
• There have been little to no repairs since you’ve had the car.
• There’s no other vehicle, at a similar price point, that you’d like better.
• You can get a good interest rate to finance the buyout price.

Early Lease Buyout

How does a lease buyout work if you choose to end early? In this case, you can purchase your vehicle before the end of the lease contract. Not all lease contracts allow this, so be sure to check beforehand if this might be an option for you. Before considering an early lease buyout, you’ll also want to be sure it’s worth the long-term investment to buy instead of lease. With this, keep in mind the history of the vehicle. So, to answer the question, “How does an early lease buyout work?”, you’ll want to examine the final price which is determined by:

• 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?

If your goal is to own your vehicle, and you think a car lease buyout is a good option for your budget and finances, how does a lease buyout work? Here are the beginning steps you can take:

• Speak to your leasing institution. When you’re nearing the end of your lease, reach out to the institution you’re leasing with to inquire about your options. They can tell you more about how a car lease buyout works with them, including whether there are any fees associated with facilitating a buyout. 
• If you’ll be financing the buyout, apply for pre-approval. Some Manhattan drivers choose to pay for their car lease buyout in full if they’ve been saving for it, but there are also car lease buyout loans available. If you plan to finance your lease buyout, now is a good time to apply for pre-approval with a few lenders to see how you qualify. Often, you can secure financing through the same dealership you had your lease with, but you can explore your options, too.
• Negotiate and finalize the buyout. There may be room to negotiate your car lease buyout down to a lower price. Once you’ve settled on a price you feel comfortable with and secured your financing, all that’s left to do is finalize the buyout! 

Find Out More About What a Lease Buyout is at Aristocrat Motors Topeka

As you can see, you have two stellar options to choose from in terms of ending your car lease in Topeka. Assess your car loan, the wear and tear, and the purchase price of your new BMW, Volkswagen to see if this investment is worth it for you. If you have any auto-related questions, feel free to reach out to us at Aristocrat Motors Topeka for further insight!