What Is A Lease Buyout?

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If you're nearing the end of your vehicle lease and love the car you're driving, you may be wondering, "What is a lease buyout, and is it the right move?" A lease buyout allows you to purchase your leased vehicle instead of returning it at the end of your lease term. For many drivers, this option provides familiarity, convenience, and long-term value, especially if the vehicle has been well-maintained and fits your lifestyle. At Five Star Lincoln, our team regularly helps Macon drivers explore lease-end options.

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How Does A Lease Buyout Work?

There are two lease buyout options drivers can choose from: a lease-end buyout and an early lease buyout. A lease-end buyout is when someone buys their vehicle at the end of the lease. With an early lease buyout, they can purchase the vehicle before the lease term ends. There's no right or wrong option, and it all depends on each driver's individual circumstances. 

 

Here are some things to know about both options: 

Lease-End Buyout

This option usually requires you to pay what the vehicle is expected to be worth by the end of the lease period. This price point is agreed upon before you sign the lease agreement. 

 

A Good Choice If: 

  • You like the vehicle
  • There have been few 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 secure a solid interest rate to finance the buyout price

Early Lease Buyout

Not all lease contracts allow this, but this allows you to purchase your vehicle before the end of the lease contract. You'll want to check your contract to see if this option is allowed. Here's what determines the price toward the end of the lease:

 

What Determines Its Price:

  • The estimated lease-end residual value on your original contract
  • The amount you still owe on the lease
  • The difference between the vehicle's depreciation and its market value (if the vehicle is below market value)

What Are Lease Buyout Loans?

There are loan options specifically for lease buyouts. Just like a regular loan, you'll have to fill out an application to get approved. You can get a loan from a bank or from a dealership near Dublin, like ours. Our finance center will help you decide if a lease buyout loan is the right choice for you, and we'll help you start the application process. 

 

For more car-buying tips and other helpful information, reach out to us.

Is A Lease Buyout Right For You? Ask Five Star Lincoln

Our finance experts will walk you through the process, explain your options clearly, and help you determine if a lease buyout aligns with your goals. Whether you are leasing or buying, we are here to serve you!