What Is a Lease Buyout?

If you’ve leased a new Toyota model from Marietta Toyota or another dealership in Kennesaw, you have a few options when your lease term comes to an end: you can return the vehicle to the dealership or you can negotiate a car lease buyout. If you’ve come to love your leased vehicle, a lease buyout will allow you to purchase the vehicle at or before the end of your lease contract for the price of its remaining value. Learn more about what the lease buyout definition is with Marietta Toyota below, or contact our team to discuss your end of lease options. 

Lease-End Buyout

There are two types of lease buyout options when you visit a Atlanta dealership. The first option occurs at the end of the lease and is the most common. The lease-end buyout option requires you to pay what the vehicle is expected to be worth by the end of the lease period. Typically, this price is agreed upon before you sign the lease agreement. A lease-end buyout is a good idea 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, that you’d like better
• You can get a good interest rate to finance the buyout price

A perk of opting for a lease-end buyout is that you know the history and condition of the vehicle already, which isn’t the case when you purchase a different used vehicle. 

Early Lease Buyout

When you choose an early lease buyout, you can purchase your vehicle before the end of the lease contract. Not every lease contract will allow this, so make sure to check your lease agreement before you contact your lender. You also want to make sure that the vehicle is worth the long term investment to buy instead of lease. It’s also important to keep the history of the vehicle in mind. Near the end of your lease, the price will be 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

Smyrna drivers usually consider an early lease buyout when they’re concerned about lease penalties from going over mileage, not adhering to scheduled services, or damages to the vehicle. 

How Does a Lease Buyout Work? 

If you’re planning to buyout your lease, then you may be wondering how a lease buyout works. Follow the steps below to start the lease buyout process and secure your vehicle for your Marietta commute:

• 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 Atlanta 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 own 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! 

Learn More at Marietta Toyota

Now that you’re more familiar with the lease buyout process, you can find the right option for your budget and secure your car for future endeavors. If you have any questions about your lease or you want to discuss a lease buyout with our finance team, contact us today! You can also read our car buying tips for more information on the car financing and leasing process.