Leasing a car allows prospective buyers to test new models and technology before committing to a purchase. Sometimes, however, drivers fall in love with their leased vehicle and don’t want to return it.
Drivers that just can’t part with a leased vehicle can often keep it as part of an auto lease buyout. Purchasing a new car is expensive, so it’s important to understand the ins and outs of an auto lease buyout before committing to an agreement with your auto dealer.
What Is an Auto Lease Buyout and How Does It Work?
An auto lease buyout is a process that allows the holder of an auto lease to purchase their vehicle after their lease agreement expires. Most auto dealers and leasing companies allow buyouts, and some contracts even allow a purchase to be made before the end of the lease period. While buyouts are relatively simple, it’s worth knowing the specifics of each step of the process.
Determine Your Car’s Value
Knowing how much your car is worth helps you determine if you can afford to buy out your lease at all. Having this knowledge handy can also help you negotiate a fair price with your leasing company. It’s good practice to research the market value of your car before officially starting the buyout process.
Contact Your Leasing Company
After determining the value of your leased vehicle, contact your leasing company and ask how much it will cost to buy out your lease. Generally, your buyout price will include:
- The value of the car
- The number of payments left on the lease
- Sales tax
- Contract fees
Most companies are firm on pricing, but under certain circumstances you may be able to arrange a better deal with lower or waived fees. Don’t be afraid to negotiate.
Once you know how much a buyout will cost, explore your financing options. While you can always finance your buyout through your leasing company, you can often find a better deal from financing companies like Gravity Lending. After you find an agreement that works for you, calculate your monthly payments to ensure you can afford it.
Why You May Want to Buy Out Your Lease
While a car lease buyout holds many benefits, it may not be the best option for everyone. Buying out your lease isn’t advisable if your car is in poor condition, has high mileage, or can be replaced at a better price. Nevertheless, if you love your car and you can afford to buy it, a lease buyout is usually an option.
Contact Gravity Lending to Discuss Lease Buyouts
If you’ve really connected with your leased vehicle, you may be able to keep it once your lease agreement expires. If you can afford it, an auto lease buyout ensures you retain ownership of your dream car for years to come.
Contact Gravity Lending to learn more about the lease buyout process, as well as current market rates and trends that may impact the feasibility of future buyouts. Our expert team can help you navigate the complex world of auto financing and find the best rates for your auto lease buyout.