What Is a Lease Buyout?

When your new or pre-owned Buick, GMC lease is about to expire, you have two options:

• You can return your vehicle to our Regina dealership and settle any remaining fees. 
• You can negotiate a car lease buyout. 

What is a lease buyout? The basic lease buyout definition is when a dealership allows you to purchase a vehicle at or before the end of a lease contract for the price of its remaining value. The exact lease buyout definition varies based on which option you choose. It’s important to know your options. How does a car lease buyout work? Take a look at the different car lease buyout types to see which works best for you. Then, make your way to Capital GMC Buick | Regina near White City.

What is a Buyout Lease-End?

This option is the most common. The lease buyout definition, in the simplest terms, requires you to pay what the vehicle is expected to be worth by the end of the lease period. Normally, this price point is agreed upon before you sign the lease agreement. This choice is a good deal if:

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

Another perk is knowing the condition and history of the vehicle you’ve been leasing, unlike when purchasing a different used vehicle.

Early Lease Buyout

You already know what a lease buyout is, but you may be wondering if you can end your lease earlier. Short answer: Yes! Long answer: you can purchase your vehicle before the end of the lease contract. Not all lease contracts allow this, so be sure to check beforehand if this might be an option for you. Before considering an early lease buyout, you’ll also want to be sure it’s worth the long-term investment to buy instead of lease. With this, keep in mind the history of the vehicle. Near the end of the lease, the price is determined by: 

• 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 

Most times, buyers in the Moose Jaw region consider this buyout when concerned about lease penalties like going over kilometers, not maintaining scheduled services, or damages to the interior or exterior of the vehicle.

How Does a Lease Buyout Work? 

Is owning your car, truck, or SUV a personal goal of yours? Do you think a car lease buyout is a good option for your budget and finances? Wondering to yourself, “How does a lease buyout work?” Here are the beginning steps you can take:

• Speak to your leasing institution. When you’re nearing the end of your lease, reach out to the institution you’re leasing with to inquire about your options. They can tell you more about how a car lease buyout works with them, including whether there are any fees associated with facilitating a buyout. 

• If you’ll be financing the buyout, apply for pre-approval. Some Moose Jaw drivers choose to pay for their car lease buyout in full if they’ve been saving for it, but there are also car lease buyout loans available. If you plan to finance your lease buyout, now is a good time to apply for pre-approval with a few lenders to see how you qualify. Often, you can secure financing through the same dealership you had your lease with, but you can explore your options, too.

• Negotiate and finalize the buyout. There may be room to negotiate your car lease buyout down to a lower price. Once you’ve settled on a price you feel comfortable with and secured your financing, all that’s left to do is finalize the buyout!  

Get Lease Buyout Assistance at Capital GMC Buick | Regina

You’ll want to choose the lease buyout option that works best for your Regina life. Between the two car lease buyout options, assess your car loan, the wear and tear, and the purchase price to see if this investment is worth it for you. If you have any remaining car-financing-related questions, our savvy consultants here at Capital GMC Buick | Regina are standing by to assist you!