What is a Lease Buyout?

As your lease draws to a close, you need to decide your next course of action. If you are ready for an upgrade in Gainesville, you can return the vehicle to the dealership and settle any remaining fees. If you’ve fallen in love with the vehicle you’ve been leasing, you can negotiate a car lease buyout. What is a lease buyout? We’re happy to share a lease buyout definition.

When you opt for a car lease buyout, a dealership allows you to purchase a vehicle at or before the end of a lease contract for the price of its remaining value. How does a lease buyout work? It depends on which car lease buyout option you choose. We explore the basics in the guide below.

Lease-End Buyout

A lease-end buyout is a more common option among Jacksonville drivers. When you choose this type of car lease buyout, you will pay what the vehicle is expected to be worth by the end of the lease period. Generally, you will agree on the price before you sign the lease agreement. 

Now that you have this lease buyout definition, you may want to consider a lease-end buyout if: 

• You love the vehicle you’ve been leasing in Valdosta
• The vehicle needed very few repairs
• There’s no other similarly-priced vehicle you prefer 
• You can get a good interest rate to finance the buyout price

Early Lease Buyout

How does a lease buyout work if you want to purchase your vehicle before the end of the contract? Keep in mind that not all lease contracts allow for an early lease buyout. The price 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 at a rapid pace and is now below market value, you may be required to cover the difference in cost. This type of car lease buyout is common for those who are concerned about lease penalties for going over mileage, not maintaining scheduled services, or damages to the interior or exterior of the vehicle.

How Does a Lease Buyout Work? 

Now that you are familiar with the lease buyout definition, you may have decided that a car lease buyout is the right choice for you. Here’s how the process works: 

• Get in touch with your leasing institution. As the end of your lease is approaching, reach out to your leasing institution. They can tell you more about how a car lease buyout works with them. 

• If you’ll be financing the buyout, apply for pre-approval. If you plan to finance your lease buyout, get pre-approved in advance. 

• Negotiate and finalize the buyout. After you settle on a price you feel comfortable with and secure your financing, the last step is to finalize the lease buyout. Then, you are ready to enjoy your vehicle for many years to come. 

Stress-Free Leasing at Lake City GMC, Inc.

What is a lease buyout? It is a great way to continue enjoying a vehicle you’ve come to love in Lake City. We make the process simple and straightforward at Lake City GMC, Inc.. Contact us today for more information, or check out our car shopping tips.