What is a Lease Buyout?

Is your vehicle lease agreement coming to an end? You have a couple of options. You may choose to bring the car back to the dealership, cover any remaining fees, and select a new model if you like. Your other option is to negotiate a car lease buyout. What is a lease buyout? The basic lease buyout definition is that a dealership gives you the opportunity to purchase the vehicle before the lease ends or at the conclusion of the lease agreement. The vehicle can be purchased for the price of its remaining value. 

You also have options when it comes to the type of lease buyout, and it is important to know which choice best suits your needs. Ron Bouchard Nissan discusses the lease buyout definition more in-depth below. 

Lease-End Buyout

Most Leominster and Fitchburg drivers opt for a lease-end buyout. With this option, you pay what the vehicle is expected to be worth when your lease ends. Generally, you and your lender will come to an agreement on this amount before you sign the lease. Why do some Gardner drivers opt for a lease-end buyout? 

• They enjoy the vehicle.
• The vehicle has not needed many repairs.
• There’s no other vehicle at a similar price point that they are more interested in purchasing. 
• They are able to secure a good interest rate. 
• They know the history of the vehicle. 

Early Lease Buyout

An early car lease buyout is another option. Here, you buy the vehicle before the lease ends. Some lease contracts prohibit this option, so be sure that it is allowed if an early lease buyout is something you are interested in. You also want to make sure it is worth the long term investment. Near the end of the lease, 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 underwent rapid depreciation and it is worth less than the market value, you could end up covering the difference.

Why do drivers opt for an early lease buyout? If a driver is worried about lease penalties for exceeding mileage limits, vehicle damage, or not keeping up with required maintenance, an early lease buyout may be the best option. 

How Does a Lease Buyout Work? 

• Talk to your lender first. As the end of your lease approaches, contact the lender to inquire about your options. They can discuss your options with you as well as any fees associated with facilitating a buyout. 
• Apply for pre-approval if you’re financing the vehicle. If you are not paying for the vehicle in full when the lease ends, you will need to finance it. Apply for financing to get pre-approved in advance. 
• Negotiate and finalize the buyout. There may be room to negotiate the cost of your vehicle. Once you have settled on a price, it’s time to seal the deal. 

Contact Ron Bouchard Nissan for More Information

If you still have questions about a car lease buyout, do not hesitate to contact the team at Ron Bouchard Nissan. We’d be happy to help!