What is a Lease Buyout?

row of carsIf you’ve been wondering if you should lease a car, having a clear view of your buyout options may make the decision a lot easier. A lease buyout is the process by which a driver can acquire permanent ownership over a vehicle that they’ve been leasing. Learn the difference between a lease-end buyout and an early lease buyout by reading on, and then find out what XPress Cash can do to help!

Lease-End Buyout

Even if you chose leasing over buying, you’ll still have the opportunity to keep the vehicle once the contract term is up. The lease-end buyout is the most common transition. With this option, you’ll pay the vehicle’s lease-end residual value. In most cases, you’ll discuss and agree upon this expected value when you sign the initial agreement.

Choose a lease-end buyout if:

  • You’re satisfied with the vehicle
  • You’ve kept up with regular maintenance, and haven’t needed any major repairs
  • You can find vehicle financing at a rate that works for you

Early Lease Buyout

Some drivers consider the early lease buyout when they’re at risk of going over their lease’s mileage limit, when they’ve failed to keep up with their vehicle’s regular maintenance schedule, or when the vehicle they’re leasing has suffered major damage. Of course, it’s also possible for a driver to fall in love with the car that they’re leasing long before the contract expires.

No matter what, you’ll want to be sure that purchasing your leased vehicle is a smart financial decision in the long run. Keep the vehicle history in mind when making this decision. Some dealerships offer the option of an early lease buyout, but others don’t, so you should confirm that it’s possible before you sign.

Learn More About Handling Your Money With Xpress Cash

Now that you know how a lease buyout works, it’s time to decide if it’s the right choice for you! After checking with your dealership and identifying your options, simply decide between the two buying options and find out how much you’ll have to pay. If your credit was good enough to secure you the lease, that’s great! Learn the benefits of financing with us, and feel free to contact us with questions!