What Is a Lease Buyout?
How does a lease buyout work? A lease buyout means you can “buy out” the vehicle before the lease is up. There are two types of buyout options for drivers near Cincinnati, OH to choose from, and you will want to know both to find the one best suited for you.
The lease-end buyout, which is the most common, requires you to pay what the vehicle is expected to be worth by the end of your lease period. The amount is decided before signing the lease agreement. A lease-end buyout is a great option if:
- 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
- You’re happy with the vehicle
Early Lease Buyout
This option allows you to buy your vehicle before the lease contract ends. Keep in mind that not all lease contracts will allow this, so make sure this is an option beforehand. Before considering the early lease buyout, make sure it’s worth the long-term investment to buy instead of lease. Keep in mind the history of the vehicle. Near the lease’s end, the price is determined by:
- If the vehicle has depreciated quicker and is below market value, you may pay the difference
- The amount you still owe on the lease
- The lease-end residual value on your original contract
Buyers will want to consider this buyout if they’re concerned about lease penalties like going over mileage, not maintaining scheduled services, or any damages to the interior or exterior of the vehicle.
Learn More at Tom Gill Chevrolet
Now that you know about the car lease buyout? It’s time to choose the option right for you. Contact us online with any questions you have about the lease buy out or other financial questions like what if I can’t make my car payment. We’re here to help any way that we can!