What Is a Lease Buyout?

What is a lease buyout, and which Clarkston car-buyers can benefit from it? A car lease buyout is when you purchase your leased vehicle, or “buy out” your lease. You can do this in one of two ways: at the end of your lease term (known as lease-end buyout), or during the lease term (early lease buyout). So how does a lease buyout work? Read on for a lease buyout definition, and learn which option will benefit you most in Waterford.

Lease-End Car Lease Buyout

What is a lease buyout intended to do? If you’ve grown to love your leased car and don’t want to trade it in, a car lease buyout is the way to go! The majority of Grand Blanc car-buyers choose a lease-end buyout — but how does a lease buyout work when you choose to purchase your vehicle after the lease has run its course? The process is simple. All you need to do is pay the difference between the total paid over the course of your lease, and the vehicle’s estimated lease-end value. Lease-end car lease buyout may be right for you if:

• You’re pleased with your car, and don’t prefer any other similarly-priced models.
• Your car hasn’t required any major services or repairs.
• Your credit score earns you a low interest rate to finance the buyout price.

Early Lease Car Lease Buyout

Say you want to buy out your lease before the lease term has finished. How does a lease buyout work then? Buying out your lease is sort of like buying a used car… except you’re both the buyer and the seller. That’s true whether you choose a lease-end or early buyout. Still, most drivers choose to wait for the lease to terminate before buying out. Buying out your lease early can help you to avoid excess costs due to depreciation or lease penalties. Early lease buyout may be for you if:

• You want to avoid lease penalties for not maintaining scheduled services (such as tire rotations and oil changes) or exceeding mileage limits.
• You expect exterior or interior damage to trigger lease penalties.
• The vehicle has depreciated more quickly than expected, and is now worth less than market value.

Negotiate Your Car Lease Buyout at Bowman Chevrolet

Whether you decide to buy or lease, the auto finance experts at Bowman Chevrolet are here to answer your questions! Contact us to find your auto financing solution, and to explore coverage options like gap insurance for Clarkston-area drivers.