What Is a Lease Buyout?

Car lease buyouts are always popular with drivers who want to pursue full ownership of a model that they’ve been leasing, but what is a lease buyout, exactly? How does a lease buyout work? Although the actual process will depend on the type of lease buyout you’re considering, you can read on with the confidence that we’ve covered everything you need to know!

Lease-End Buyout vs. Early Lease Buyouts

If you’re nearing the end of your current lease, it’s a good idea to consider a lease-end buyout before you drive in from Henrico or Glen Allen. Here’s why:

• Although it’s normally necessary to return the leased vehicle, drivers who choose a lease-end buyout can bring it home for good instead.
• A lease-end buyout is a good idea if you like the vehicle, you haven’t had to deal with many repairs, and you can get a good interest rate when you apply for financing. 

Early lease buyouts are far less common, and in most cases, they’re more of a last resort. Here’s what you should keep in mind:

• Executing an early lease buyout technically entitles you to end your lease early. After all, you’re no longer renting the vehicle if you’ve decided to pursue full ownership.
• However, you’re still buying the vehicle, and if you aren’t able to pay cash, you’ll need to finance the remaining value. 
• Even if an early lease buyout is an option in your situation, it’s only a good idea if ending your lease in the standard way would require you to pay many different fees and charges.
• Even with an early lease buyout, you’ll need to pay the remaining balance on your lease contract. You may also have to pay an early termination fee.

As long as you’ve scheduled necessary services and stayed within your mileage limit, you shouldn’t ever have to worry about executing an early lease buyout.

How Does a Lease Buyout Work? 

You’ve got the lease buyout definition, but if you’re planning to take this path when you visit our lease return center, you should understand the whole process. Here’s how a lease buyout works:

• Contact the institution that you’re leasing from. Different dealerships have different rules for lease buyouts. Speaking to your lessor in advance can help you get a better idea of what to expect.
• Apply for pre-approval before the end of your lease. Although you can apply for a loan when you visit the dealership, it’s easier and quicker to submit your application online.
• Negotiate the final buyout price with your dealership. Some lease buyout prices are subject to negotiation. Research similar vehicles and find out how much they’re selling for. Come prepared to talk through the details with your lender.

Lease or Buy with Rick Hendrick Chevrolet Buick GMC Richmond!

Whether you’re interested in leasing a new model or you’d prefer to execute a buyout on your current lease, our financing experts are here to help with anything you need. Contact us today to get started, or just drive in! We’re easy to reach from anywhere near Goochland.