What Is a Lease Buyout?

If you’re leasing a Chevrolet vehicle in the Raleigh area and you’re nearing the lease-end period, you will have a couple of options! One option is to return the vehicle at the dealership, settle any lease-end fees, and find a new vehicle you’d like to start leasing–or head home if you’re not sure what your next move should be. Alternatively, you could pursue a lease buyout. What is a lease buyout? The simplest lease buyout definition is when a lessee decides to purchase a vehicle at or before the lease-end, for the price of the vehicle’s remaining value. If you choose a car lease buyout, you can do an early buyout or a lease-end buyout. Learn how each option works with the Hendrick Chevrolet Buick GMC Southpoint finance center in the guide below!

Car Lease Buyout at the Lease-End

The most common type of car lease buyout is a lease-end buyout. How does a lease buyout work when it’s at the end of the lease? You will be purchasing the car for the price of its expected value at the end of the lease period—this number is usually agreed upon in the original lease contract.

Is a lease-end buyout a good option for you? If you relate to the following points, it may be!

• You love the vehicle so much that you want to own it
• The vehicle hasn’t required any major repairs during your time leasing it
• Your research hasn’t shown any similarly priced new vehicles that you’d rather buy
• You’re able to get a favorable interest rate to finance the car lease buyout

A lease-end buyout is advantageous for many Cary drivers because they get to pay an affordable pre-owned price, but unlike standard used vehicles, they know the complete history of the car–because they’ve been the person driving it for the last three years!

Early Car Lease Buyout

What’s the lease buyout definition for an early buyout? This is when the lessee is able to purchase the vehicle before the lease contract expires. Some lease contracts prohibit early buyouts, so you will need to check if this is possible first. How is the price determined in an early lease buyout? These are the factors that matter:

• The amount still owed on the lease
• The lease-end residual value that was agreed upon in the original contract
• If the vehicle depreciated faster than expected and is now below market value, the buyer may be asked to pay the difference

Typically, the lease-end buyout is only considered if the lessee has concerns like exceeding the mileage limit for their lease, failing to maintain the vehicle as scheduled, or damage done to the interior or exterior of the car.

How Does a Lease Buyout Work?

For those who want to own their vehicle and think a car lease buyout is a good option, how does a lease buyout work? Here’s what Durham drivers can do to get started:

• Contact your leasing institution. When the end of your lease contract is approaching, get ahead by contacting the leasing institution to ask about the potential for a car lease buyout. They’ll be able to confirm whether it’s possible and provide pertinent information like whether you’d have to pay buyout fees.
• Apply for pre-approval if you want to finance a buyout. Some Chapel Hill drivers choose to lease a vehicle with the intention of saving their money during the lease period, knowing they’ll want to do a buyout at the end. Others choose to finance a buyout, in which case it’s smart to apply for pre-approval to see the rates you’re qualified for.
• Negotiate and finalize the buyout. You may be able to negotiate a lower price for your car lease buyout. Once you reach a price you feel good about moving forward with and get approved for financing, the last step is to finalize your car lease buyout and drive your vehicle home!

Explore Car Lease Buyouts at Hendrick Chevrolet Buick GMC Southpoint

How does a car lease buyout work at Hendrick Chevrolet Buick GMC Southpoint? Contact us or stop by our dealership to learn more about the process! Our experts are here to get to know you and your needs, so we can help you make a confident purchase decision.