How to Refinance a Lease

Items like new cars and equipment can be leased instead of purchased. A lease usually allows a consumer to purchase something for a short time period with a low down payment amount. At the end of a lease, the consumer is presented with a buyout amount and has the choice to pay the buyout amount and assume ownership or return the item to the company. A consumer can refinance a lease into a loan, but the buyout amount must be included in the loan. This means that the consumer ends up owning the item.

Instructions

1

Gather a current lease statement and the original leasing contract. If you manage your lease online, log into your online account.

2

Get the payoff amount for the lease either online or from a statement. If you cannot find the payoff amount, call the leasing company using the customer service number listed on the statement.

3

Look into the details of the contract for the buyout amount. This will be the large balloon payment that is due at the end of the lease if you wanted to purchase the equipment at lease end.

4

Add together the payoff amount and the buyout amount. This is the total amount you will need to refinance.

5

Contact lenders or local financial institutions to inquire about a loans to refinance your lease. Online quote websites, such as MyAutoLoan.com, can be used to get multiple loan quotes at the same time.

6

Choose a lender and submit a loan application. Wait for approval and dispersal of funds, and then pay off the lease. Then you will only have the new refinanced terms to pay.