What is a Lease Buyout?

Woman shaking mans hand over a car contract clipboard with car keys

 

Leasing a car is an easy solution when you’re looking to upgrade your Costa Mesa commutes with improved performance and the latest technology. When your lease is about to expire, you have a few options: return the vehicle and settle any remaining fees or negotiate a car lease buyout. So, what is a lease buyout? A simple lease buyout definition is when you discuss terms with the dealership to purchase the vehicle at the end of a lease contract. There are a few ways you can cover the remaining value of the vehicle for purchase. How does a lease buyout work? Learn more below and find the right option for you with Weir Canyon Acura.

Lease-End Car Lease Buyout

When you want to purchase the vehicle you’ve been leasing, the most common option is to wait until your lease is about to end. This allows you to pay what the vehicle is worth by the end of the lease period. Typically, this price is settled before you agree to the lease terms. This can be a great option if: 

  • You’ve grown to love the model you leased
  • The car has required little to no repairs since you’ve had it
  • No other vehicle at a similar price point has caught your eye
  • You can get a good interest rate to finance the buyout price

It can be hard to let a model go once you’ve driven it for a few years. One perk of a car lease buyout is that you already know the condition and history of the vehicle you’ve been leasing.

Early Car Lease Buyout

What is a lease buyout option before your lease ends? Although not all lease contracts allow this, an early lease buyout allows you to own the model you love without having to deal with monthly payments. Before agreeing to the terms of the lease, you’ll want to see if they allow early buyouts and whether buying vs. leasing is the right option for you. When calculating the vehicle price with an early car lease buyout, you’ll need to know: 

  • The calculated lease-end value on your original contract
  • How much is owed on the lease
  • The difference you have to pay if the vehicle has depreciated quicker than expected and is below market value

This may be a good option if you’re concerned about going over mileage limits during your Tustin commutes or if you’ve received interior or exterior damage to the vehicle. 

How Does a Lease Buyout Work? 

Once you’ve deliberated on whether a lease buyout is right for you, familiarize yourself with the steps necessary to own the model you love. Here’s how a lease buyout works:

  • Speak to your leasing institution. Reach out to your leasing institution to discuss the terms of a lease buyout. They can get into the details of how they deal with a lease buyout, including whether there are any fees associated with a buyout. 
  • If you’ll be financing the buyout, apply for pre-approval. A buyout doesn’t have to come out of pocket if it will strain your budget. You can apply for pre-approval for a car lease buyout loan. Take some time to browse lenders around Montclair to see how you qualify. Sometimes, you can find financing options through the dealership you’ve leased from.
  • Negotiate and finalize the buyout. You may be able to negotiate a new buyout price with the dealership. After the price is finalized and you’ve secured your payment options, simply sign the contract and drive home in the vehicle you own. 

Learn More Financing Tips with Weir Canyon Acura!

Have we answered all your questions about “What is a lease buyout?” Contact our team at Weir Canyon Acura to discuss a lease buyout or other leasing options. A lease buyout helps eliminate the hassle of shopping for a new car at the end of your lease. Explore more simple car-buying tips with our finance team.

 

More from Weir Canyon Acura

  • 2024 Acura TLX MPG

    Looking for a sporty sedan with some zip and outstanding fuel efficiency? You’ll love the 2024 Acura TLX mpg ratings for your Costa Mesa drives. This car has outstanding power with its turbocharged engine choices to go along with Super Handling-All Wheel Drive (SH-AWD) capabilities for slick roads. Keep reading this guide to the 2024 Acura…

  • 2024 Acura Integra 0-60 Time

    Ready to put a high-performance sedan in your Costa Mesa garage? Look no further than the 2024 Acura Integra, a stalwart of the brand for decades. It’s got everything a modern driver wants in a new vehicle, from a high-tech interior to a speedy engine.  Our guide to the 2024 Acura Integra 0-60 time covers much…

  • 2024 Acura RDX MPG

      Acura vehicles are high-performing, premium vehicles that will transform the way you enjoy your drives around Costa Mesa and Tustin. If you’re searching for a vehicle that can deliver high-end performance and impressive fuel efficiency, you’d want to take a look at the new Acura RDX. The 2024 Acura RDX mpg for its base trim…

Weir Canyon Acura 33.8769357, -117.75044.