What is a Lease Buyout?

As your car lease is about to end, you have two options. You can return your vehicle to our Greenacres-area dealership and settle the remaining fees or negotiate a car lease buyout. But what is a lease buyout? The basic lease buyout definition is when the dealership allows you to buy your vehicle at or before the end of your lease contract for the price of its remaining value. You have two different lease buyout options to choose from and consider. Learn how a lease buyout works with Al Packer Ford Royal Palm Beach and use all our finance tools, including our credit score estimator!

Lease-End Buyout

When answering how a lease buyout works, it’s important to explore what a lease buyout is. The most common option is a “lease-end” buyout. This would allow you to pay what the vehicle is expected to be worth by the end of your lease period. Normally, this price point is agreed upon before you complete the lease agreement. This can be the perfect choice if:

• You’re happy with the vehicle
• There have been few to no repairs since you’ve had the car
• There’s no other model, at a similar price point, that you would like better
• You can get a good interest rate to finance the buyout price

Another benefit is knowing the history and condition of the vehicle you’ve been leasing, unlike if you decide to purchase a different used car.

Early Lease Buyout

By contrast, an early lease buyout means you can purchase before the end of your lease contract. Not all car lease buyouts allow this, so check beforehand if you want to choose this option. You also want to be sure it’s worth the long-term interest to buy instead of lease. At the end of your lease, the price is determined by:

• The lease-end residual value on your original contract
• The amount still owed on the lease
• If your vehicle has depreciated faster and is below market value, you might have to pay the difference.

Most times, West Palm Beach-area buyers choose this car lease buyout when they’re concerned about going over mileage, not maintaining scheduled services, or any potential damage to the exterior or interior.

How Does a Lease Buyout Work?

Now that you’ve learned what a lease buyout is, this is the perfect option if you want to own the vehicle. Here are some steps you can take to start the process:

• Speak to Your Lending Institution: When you’re nearing the end of your lease, reach out to the dealership or organization you’ve been leasing with to inquire about your options. They can provide a proper lease buyout definition, including whether you will have fees for facilitating a buyout.
• Apply for Pre-Approval If Financing: Some Wellington buyers may decide to pay for their lease buyout in full if they’ve been saving for it. It’s also a great time to apply for financing with local lenders to see how you qualify. You can secure financing through the dealership you had your lease with, but you can always explore every option.
• Negotiate and Finalize The Buyout: You can bring your lease buyout to a lower price. Once you’ve settled on a price you’re comfortable with and secured financing, finalize the buyout.

Explore Your Leasing Options With Al Packer Ford Royal Palm Beach!

Now that we’ve provided a proper lease buyout definition, the team at Al Packer Ford Royal Palm Beach is here to help! When considering your choices, explore our new vehicles to see if anything catches your eye. Find the perfect lease buyout option near Greenacres with Al Packer Ford Royal Palm Beach!