What is a Lease Buyout?

As your car lease ends, you might wonder about your options. You can return your vehicle to our Middle River dealership and settle any remaining fees or you can undertake a car lease buyout. How does a lease buyout work? The basic lease buyout definition is when a dealer allows you to buy your vehicle at or before the end of your contract for the price of its remaining value. You will have two potential car lease buyout options to select, and it’s important to know what they involve. Learn what a lease buyout is in the following overview from Al Packer's White Marsh Ford!

Lease-End Buyout

As we explore how a lease buyout works, it’s important to understand what both options entail. A lease-end buyout is when you pay what your vehicle is expected to be worth by the end of its contract. Normally, the price point is agreed upon before you sign the lease agreement. This can be a great option if:

• You’re happy with your Ford
• There have been few to no repairs since you’ve had the car
• You can’t find another vehicle, at a similar price, that you prefer
• You can get a good interest rate to finance the buyout price

Another bonus is that you know the history and condition of the vehicle you’ve been leasing, unlike if you decide to purchase a different used model.

Early Lease Buyout

When you choose this car lease buyout option, you can purchase your vehicle before the end of a lease contract. Not all lease contracts will allow this, so make sure this is an option. Before considering an early lease buyout, you also want to make sure it’s worth the long-term investment to buy instead of leasing. Remember to keep your vehicle’s history in mind as the price near the end of the lease will be determined by the following:

• The lease-end residual value on your original contract
• The amount still owed on the lease
• If your vehicle had depreciated faster than expected and is below market value, you might need to pay the difference 

Many times, Dundalk-area buyers will choose this option when concerned about lease penalties, including going over mileage, not maintaining regular services, or damages to the vehicle’s exterior or interior. 

How Does a Lease Buyout Work? 

Now that you’ve read the lease buyout definition, choosing this option is ideal if you plan to own the vehicle you’ve been leasing. But how will a lease buyout work? Here are some of the beginning steps you need to take: 

• Speak to Your Leasing Institution: When you’re coming to the end of your lease, contact the organization you’ve been leasing with to ask about your options. They can answer all questions about what a lease buyout is and if there are any fees associated with this process.
• If Financing, Apply For Pre-Approval: Some Bel Air drivers decide to pay for their lease buyout in full if they’ve been saving, but you also have available loans. For those who plan to finance their lease buyout, this is the best time to apply for pre-approval with several local lenders to see how you qualify. Often, you’ll be able to secure financing through the same dealer you had your lease with, but it’s important to explore all your options.
• Finalize the Buyout: You can negotiate your lease buyout down to a lower price. Once you’ve settled on a price you feel comfortable with and secured financing, finalize the buyout.

Undertake a Lease Buyout With Al Packer's White Marsh Ford!

Now that you understand the lease buyout definition, turn to the finance team at Al Packer's White Marsh Ford. Between showcasing your options and discussing terms, we’ll help you decide if this is the best choice for your needs and budget. If you plan to return your leased car instead, learn more in this guide. Explore all your end-of-lease options near Parkville with Al Packer's White Marsh Ford!