Would you like to own the car that you have been leasing? You are already familiar with the vehicle and know its reliability, so you are making an informed decision. Usually auto leases will give their leasers the option to buy the vehicle either during or at the end of the lease. This is called a lease buyout. With a lease buyout, the car becomes yours, and you no longer need to make payments every month towards a car that you eventually have to return.
Different Types of Lease Buyouts
There are two different types of lease buyouts, determined by the time at which you decide to purchase the vehicle. These are:
- Normal Buyout: This is when you purchase the vehicle after the lease has ended. Typically, the price you have to pay is determined by the residual value of the car at the end of the lease, which is stated in your lease contract. However, this number can often be negotiable.
- Early Buyout: This is when you decide that you want to purchase the vehicle in the middle of your lease. However, this is not always easy. Some companies will decide that your request should be handled as an “early termination,” which can be very expensive.
Financing a Lease Buyout with a Loan
Financing a lease buyout can be costly, and may require you to take out a loan. You want to find the best rate available to make financing a lease buyout possible. Applying for a loan online is not only incredibly convenient and easy, but you are practically guranteed a lower interest rate. Because online lenders have access to countless investors, they are able to find you the best rate possible.
* Auto Loan Center is not an auto loan lender or broker, but provides information about auto loan products and lenders. Not all products and services are available in all states.