What is a Lease Buyout?

If you’re reaching the end of your Roswell-area lease, you have a couple options. Either you can decide to return your vehicle to the dealership and take care of any remaining fees, or you can negotiate a lease buyout. But what is a lease buyout, and how does a lease buyout work? The lease buyout definition involves purchasing your leased vehicle from the dealership before or at the end of the lease, at the price of its remaining value. Read on with United BMW to learn more about car lease buyouts and find out when a buyout is a good idea.

Car Lease Buyouts: Lease-End Buyout

A lease-end buyout means you’re purchasing the vehicle at its expected worth at the end of the lease term. Often, this amount is agreed upon when signing the lease agreement, but this ends up being a great option for Marietta drivers if:

• You’re happy with the vehicle
• There have been little to no maintenance issues while you’ve had the car
• You can’t find another vehicle with a similar price point that you prefer
• You’re offered a good interest rate to finance the buyout price

If your leased vehicle has served you well on Alpharetta adventures, considering a lease-end buyout means you don’t have to worry about learning the condition and history of another vehicle. 

Car Lease Buyouts: Early Lease Buyout

While not all lease contracts allow this, you may have the options to purchase your vehicle before your lease agreement ends. It’s a good idea to consider the vehicle history and whether purchasing a vehicle is the right investment for you. The factors that determine the early lease buyout price include:

• The lease-end residual value on your original contract
• The amount you still owe on the lease
• The rate of depreciation. If the vehicle depreciates quickly and the value is below market value, you may end up paying the difference. 

Johns Creek drivers considering this option are usually concerned about the penalties relating to going over mileage limits, not maintaining scheduled services, or interior or exterior damage to the vehicle. 

How Does a Lease Buyout Work at a Dealership? 

You know what a lease buyout is, but how does a lease buyout work when heading to a Johns Creek-area dealership? Here’s an idea of what a lease buyout looks like:

• Speak to your leasing institution. Stay in contact with the leasing institution. If you’re ready to consider your buyout options, they can go over the terms for purchasing your leased vehicle, including whether there are any fees attached with either buyout option. 
• If you’ll be financing the buyout, apply for pre-approval. If you are considering a car lease buyout at the beginning of the agreement, you can save up and purchase the vehicle in full at the end of the lease term. However, you can also get pre-approved financing with lenders to see how you qualify. It’s a good idea to shop around for options, but it’s likely that you can secure financing from the dealership where you leased the vehicle.
• Negotiate and finalize the buyout. You may have the option to negotiate your car lease buyout price. After agreeing on a price and securing your financing, all that’s left to do is finalize the deal and get back to your adventures around town. 

Explore Your Lease Options with United BMW!

Now that you have a better understanding of what a lease buyout is, reach out to the team in our finance center at United BMW to discuss your options. Even if you decide a car lease buyout isn’t for you, our team is with you at every step of the process. Learn about how to be prepared for returning a leased car, and don’t hesitate to contact us if you have any questions.