When your car lease is ending, you have three choices: return it to the dealership and settle any fees, keep leasing it, or if you want to keep the car, try negotiating a lease buyout. What is a lease buyout, and how does it work? A lease buyout is when you decide to buy your vehicle at or before the lease term ends for the price of its residual value. There are two types of car lease buyouts, and it’s important to understand them. Check out the different types below to figure out what suits you best in South Florida. Feel free to reach out to the Management team at Arrigo CDJR West Palm Beach if you have any questions.
Opting for a standard lease-end buyout is the most common route. In this type of car lease buyout, you pay the anticipated value of the vehicle at the end of the lease term plus any taxes, state fees, and inspection fees*. See dealer for details. Choosing a standard lease-end buyout makes sense if:
- You’re satisfied with the vehicle’s performance and condition.
- There have been minimal repairs during your time driving around South Florida.
- You haven’t found another vehicle at a similar price point that you prefer.
- You qualify for a good interest rate to finance the buyout, or you have the cash.
A notable advantage of a lease buyout is that you know the condition and history of your car, unlike when buying a different pre-owned vehicle. If you have any questions, feel free to contact the Management Team at Arrigo CDJR West Palm Beach.
In some cases, you have the option to buy your leased car before the lease period ends, known as an early lease buyout. However, not all lease contracts allow for an early car lease buyout, so it’s essential to check with your lease provider. When contemplating an early car lease buyout, it’s important to crunch the numbers to see if it makes sense for the long-term investment compared to leasing. If you decide to go ahead, the price you pay is determined by one of the following methods:
- The lease-end residual value specified in your original contract.
- The remaining balance on the lease.
- If the vehicle has depreciated faster than expected and is below market value, you may need to cover the difference.
Typically, Florida drivers explore this early car lease buyout option when they’re concerned about lease penalties, such as exceeding the mileage limit, neglecting auto service, or incurring damages to the vehicle. If you have any questions, reach out to the Management Team at Arrigo CDJR West Palm Beach.
Wondering how a lease buyout works? Here are the steps to a vehicle lease buyout:
- Talk to your leasing company: When your lease term is coming to an end, reach out to your leasing company to inquire about your options. They’ll explain their process for a vehicle lease buyout and let you know about any associated fees.
- If you’re financing the buyout, get pre-approved for a loan: While some people can cover their vehicle lease buyout with savings, if you can’t, there are vehicle loans available. Apply for pre-approval from multiple lenders to compare rates and determine eligibility.
- Finalize the buyout: You might have room to negotiate a lower price for the vehicle if you’ve done your research and can support your request. Once you’ve agreed on a vehicle lease buyout price and secured financing, all that’s left is to sign the papers*. If you have any questions, feel free to contact the Management Team at Arrigo CDJR West Palm Beach.
Now that you know how a lease buyout works, feel free to contact us with any other questions you may have regarding auto leasing in South Florida. Our Management team will assist you with any choice, whether it’s a lease turn-in or lease buyout.
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