What Are the Buyout Options After a Lease Is Done?

Those who lease cars typically do so to save money on their monthly payment and to avoid the hassles of owning a vehicle. In some cases, though, you may consider buying the vehicle toward the end of your lease agreement. In this situation, you have a few different options to look at before making a decision.

Buy the Car Early

Towards the end of your lease, you may wish to buy the car. When you find a car you love, sometimes it is hard to let go. At any point during the lease term, you have the option of buying the vehicle. The leasing company can give you a quote on the current buyout amount at any point. When you decide that you want to buy the car, simply called the car dealership and find out what the buyout amount is. At that point, you can buy the car for that amount.

Buying at the End of the Lease

If you wait until the end of your lease, you will have a few options to consider. At that point, the dealer will typically allow you to buy the car for a predetermined amount. When you signed the lease, the dealer most likely provided you with the residual value of the car at the end of the lease. Typically, you can buy the car for the residual value plus a little extra.

Negotiating the Purchase

In this situation, you also have the option to negotiate a price for the car. Even though the dealer will most likely try to get you to buy the car for the residual value, the purchase price of the car is negotiable. It can be difficult for the dealer to calculate exactly how much the value of the car will be three years in advance. The market sets car values, and if the car market is struggling, it lowers the value of your car.

Financing

If you want to purchase the car after the end of your lease, you also may have the option to finance it through your dealer. Once the dealer knows that you want to buy the car, you may be able to apply for a loan through the dealership. If the dealer knows that you are going to finance the purchase through its financing programs, it may give you a better deal on the actual price of the car.