What Is a Lease Buyout?

Maybe your lease isn’t over yet, but you want to take the initiative and buy your vehicle. A lease buyout is when your local Oshkosh dealership allows you to “buy out” your vehicle before the end of the lease contract. How does a lease buyout work? There are two types of lease buyouts, and the finance department at Holiday Automotive has put together this page to act as a handy guide showing you how to buy out a lease. Learn about the in’s and out’s of a lease buyout with Holiday Automotive.

End of Lease Buyout

This is the more common option among Sheboygan drivers. This lease buyout option requires that you pay what the vehicle is estimated to be worth by the end of the lease period. The final price is usually determined before you sign the lease agreement in the beginning. This lease buyout option would be most beneficial to you if:

• You’re satisfied with the vehicle
• There have been minimal repairs since you’ve had the car
• There’s no other similarly-priced vehicle that you prefer
• You can get a good interest rate to finance the buyout price

Another great benefit of buying out the lease at the end of the contract is that you already know the current condition and history of the vehicle since you are the one who has been driving it.

Early Lease Buyout

This option allows you to buy your vehicle before the lease contract actually ends. This is less common since not all lease contracts allow you to do this. You’ll want to check at the beginning of your lease contract to see if this is a possible option for you. Before you consider an early lease buyout, you’ll want to make sure that buying the vehicle before the lease is up is worth it in the long run. Keep in mind the history of the vehicle throughout your time with it.

When the end of the lease approaches, here is how the final price is determined:

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

Some West Bend drivers consider this option when they are concerned about lease penalties like going over the mileage, missing scheduled services, or interior and exterior damage to the vehicle. Can you negotiate a lease buyout? It depends on the contract and the dealer, but it’s always worth asking. For more leasing FAQ, visit Holiday Automotive online.

Lease a New Vehicle at Holiday Automotive

Now that you know how a lease buyout works, you can make the best financial decision for your current or future lease. Contact us to explore our current lease offers and get behind the wheel of a new vehicle for your Fond du Lac commute.