What is a Lease Buyout?

Your leased car has served you well on your Pasadena commute. It’s served so well, in fact, that you’re thinking you’d like to own it. That’s when a lot of drivers consider a car lease buyout—but what is a lease buyout, and how does a lease buyout work? A lease buyout is when you buy the car that you are currently leasing. Generally speaking, you’ll need to pay whatever asking price is listed in your contract, either with cash or with financing. But there’s more to it than that, so keep reading for a more detailed lease buyout definition.

A Car Lease Buyout Definition

Not every car lease buyout happens exactly the same way. For instance, what is a lease buyout called when you want to buy your car before the lease is up? What about if you decide to buy on the day that you close your contract? Here is the lease buyout definition for each:

• Lease-End Buyout: What is a lease buyout called when you buy the car after you’ve fulfilled the lease? This is a “lease-end buyout”, and it is pretty common. The terms of this auto lease buyout are usually spelled out in your lease agreement, but you should read the fine print carefully.
• Early Lease Buyout: This is what takes place when you want to buy the vehicle before the contract is up. How does a lease buyout work in this case? You will need to do your research in order to get favorable terms, but this option can save money for many Thousand Oaks drivers.

If you’d like to end your lease early but you are not committed to buying, you might want to find another driver who can take over your contract. Not quite ready to make a decision? In some cases, it may be possible to extend the lease.

How Does a Lease Buyout Work?

Dealerships are more than happy to sell you the car you’re leasing, even before the lease is up. But follow the steps below to ensure you’re getting the best deal:

• Find out how much your model and make of car is currently selling for. It’s especially important to look for examples of the car being sold for less than the asking price in your contract.
• Call the financing institution that holds your lease and make an offer. Most lenders would rather sell the car to you at a lower price than risk you walking away from the lease.
• Make arrangements to purchase the car at your negotiated price.

Talk to the Finance Department at Rusnak Auto Group of Pasadena

If you’re ready to buy your leased car, talk to our finance department. We’ll be glad to walk you through your options. And, if you found this article to be helpful, check out our post on how to return a lease. We have several convenient locations near Pasadena and Westlake Village. So, drop by or give us a call today.