What is a Lease Buyout?

Finance Paperwork with Glasses
If you are enjoying your leased Acura and hate the thought of returning it to the auto dealership, you should consider a lease buyout. What is a car lease buyout, and is it the right option for your Canton lifestyle? A lease buyout, sometimes called a lease payout, is when you purchase the car you’re leasing instead of returning it to the dealership (if your lease contract permits it). Keep reading to learn more about car lease buyouts, and contact the Acura of Avon finance team with any questions.

Lease-End Buyout vs. Early Lease Buyout

How does a lease work? There are two ways for West Hartford drivers to move forward: lease-end buyout and early lease buyout. As you might have guessed, a lease-end buyout means you wait until the end of the original lease term before buying out. With an early lease buyout, you buy out your leased vehicle before the end of the original term.

Things to Consider in a Lease-End Buyout

By far, the more popular option with Manchester drivers is lease-end buyout. So, what is a lease buyout going to do for you if you wait until the end of the term? All you need to do is pay the difference between the amount you’ve already paid, and the car’s estimated lease-end value. You should consider this option if:

  • There’s no other vehicle at a similar price point that you’d rather be driving.
  • The vehicle hasn’t required any major repairs while you’ve been driving it.
  • You have a high credit score that can earn you a low-interest rate for financing the buyout price.

A key benefit to a lease payout is that you know the history and condition of your leased vehicle.

Early Lease Buyout

How does a lease buyout work if you want to pay off your loan early? This car lease buyout option is less common, but it may be the right choice if:

  • You want to avoid lease penalties for exceeding mileage limits or missing routine maintenance appointments.
  • The vehicle has sustained damage that may also cause lease penalties.
  • Depreciation occurred more quickly than expected, and the vehicle is worth less than the estimated market value.

How To Negotiate a Car Lease Buyout

If you want to proceed with a lease payout, here are the steps:

  • Check with your leasing company: Near the end of your lease term, reach out to your lending company to see if it’s a possibility and to start a negotiation. Ask about any fees associated with doing a lease buyout.
  • If you need to finance the car lease buyout, apply for credit approval: If you don’t have the funds saved to buy your vehicle, you need a loan. You can quickly apply for pre-approval at Acura of Avon online.
  • Proceed with the end of lease negotiation: It’s worth trying to see if you can negotiate your car lease buyout down to a price that works for your Manchester budget. Research your car’s market value and ask the dealership to give you a fair price.

Lease Your Next Acura From Acura of Avon Today

You can think of a car lease buyout as though you’re purchasing a used car from yourself — except, in this case, you have the advantage of knowing the vehicle’s full history! Don’t hesitate to get in touch if you need clarification on the lease buyout definition or how to negotiate a lease buyout. Our team of auto finance experts are standing by to help you decide whether to lease or finance your next vehicle, how to return your lease, and more.

 

More from Acura of Avon

  • 2023 Acura Integra Interior

    There are four packages for Hartford drivers to choose from the Acura Integra. The interior is designed with 12-way power adjustability and memory function seats, along with a leather-wrapped steering wheel and ambient cabin lighting. Each bit and piece of the Acura Integra is designed for versatility and functionality from the 9-inch full color touchscreen…

  • 2023 Acura MDX MPG Ratings

      A performance luxury SUV doesn’t have to come at a premium price every time you pull into the gas station. Not when you’re driving a 2023 Acura MDX with MPG ratings of 19 mpg city/25 mpg highway.* That’s competitive with most Hartford third-row SUV MPG ratings. Take a look at the Acura MDX gas…

  • The Efficient 2023 Acura Integra MPG Estimates

    Gas mileage and fuel efficiency are on the minds of most Canton drivers lately, thanks to the current state of gas prices. Fortunately, the 2023 Acura Integra mpg estimates reach as high as 37 miles per gallon on the highway. We go into more detail about the 2023 Acura Integra gas mileage below, along with other…