What Is a Lease Buyout?

If your lease is about to expire, you may feel a bit confused about how to proceed. You can always return your vehicle to one of our Del Grande Dealer Group locations, but are there any other options? Yes! You can negotiate a car lease buyout. But what is a lease buyout? How does a lease buyout work? The lease buyout definition is fairly straightforward. 

A car lease buyout is when you purchase your vehicle for the remaining value at the end of your lease contract. There are two different car lease buyout options, so working with our DGDG lease return team is the best way to ensure you’re making the right decision. Learn more with us below!

Lease Buyout Definition – Lease-End Buyout

Now that we’ve established the general lease buyout definition, let’s talk about your different options. The most common option is the lease-end buyout. This method requires you to pay what the vehicle is expected to be worth by the end of the lease period. Oftentimes, this price point is set before you sign the lease agreement. This option is a strong choice if:

• You’re satisfied with the vehicle
• There have been few repairs since you’ve had the car
• There’s no other vehicle, at a similar price point, that you’d prefer
• You can secure a fair interest rate to finance the buyout price

Another bonus of opting for a lease buyout is your intimate knowledge of the vehicle’s history and service record. That way, you don’t have to play any guessing games when taking ownership of your San Jose ride.

Lease Buyout Definition – Early Lease Buyout

A second option is to purchase your vehicle before the lease contract has run its course. You’ll want to check the specifics of your agreement before you sign since not all lease deals offer this option. Before you decide on an early lease buyout, you’ll want to be sure you’re making a strong long-term commitment. Along with thinking about the future, considering the history of the vehicle is important. Near the end of the lease, the price is set by:

• The lease-end residual value on your original contract
• The amount you owed on the lease
• Depreciation in relation to market value – you may have to pay the difference

This option is often considered by those who are concerned about going over mileage limits, failing to keep up with service standards, or after damage has occurred.

How Does a Lease Buyout Work? 

If your goal is to own a vehicle and you think a lease buyout is a strong option, it’s good to get a very picture of the entire process. So, how does a lease buyout work? Find out here:

• Consult with your leasing institution. As your lease draws to a close, reach out to the leasing institution to discuss your options. They can offer specifics on how their lease-end options work, provide information on fees, and help facilitate the buyout. 

• If you’ll be financing the buyout, apply for pre-approval. While you can pay the full balance of your car lease buyout, you can also finance the balance. You can often secure a favorable loan through the same institution that offered your lease. 

• Negotiate and finalize the buyout. If you’re content with your current San Francisco ride, there’s no reason to overpay to keep it! There may be room to negotiate your car lease buyout down to a lower price. You can confidently negotiate to try and settle on a price you’re more comfortable with!

Learn More at Del Grande Dealer Group

Now that you’ve answered the question, “What is a lease buyout?” you can turn to Del Grande Dealer Group for trustworthy guidance. Our experienced finance professionals can walk you through your lease buyout with precision. If you decide you’d rather take another approach, we can help you find the best option moving forward. If you’d like to learn more about lease buyout options, contact us today! Or, feel free to visit one of our locations near Sunnyvale for personalized recommendations.