What Is a Lease Buyout?

Many customers have asked us at Fisher Acura, “Can you negotiate a lease buyout?” The answer is yes. When your car lease term is near the end, you have two options: return the vehicle to the Boulder dealership where you got it and pay any remaining fees, or you can negotiate a lease buyout. A lease buyout is when a dealership allows you to purchase the leased vehicle at or before the end of a lease term for the price of its remaining value. Are you wondering how to negotiate a lease buyout? If so, keep reading, and contact our finance team with any questions.

Lease-End Buyout

A lease-end buyout is the most common option of a car lease buyout. A lease-end buyout means that you pay a pre-determined estimate of the vehicle’s value at the end of the lease period. Usually, this price is agreed upon and stipulated in your lease agreement before signing it, but you may still be able to do some end-of-lease negotiation. This might be a good choice for you if:

• You’re pleased with the vehicle
• There have been little to no repairs required while you’ve driven the car
• There is no other vehicle at a similar price point that you’d like instead of the one your driving
• You can negotiate a reasonable interest rate to finance the buyout price

A key benefit of a lease-end buyout is that you know the condition and history of the vehicle you’ve been leasing,

Early Lease Buyout

When you do an early lease buyout, you purchase your vehicle before lease-end. Not all lease agreements allow this, so check to see if it’s an option for you. Before considering an early lease buyout, you should also check that it’s worth the long-term investment to buy instead of lease. At the end of your lease, the price you’ll pay is determined by:

• The predetermined lease-end residual value stated in your original contract
• The amount you still owe on your lease
• If the vehicle has depreciated more than anticipated and is below market value, you may have to pay the difference

Golden drivers often consider an early lease buyout when concerned about lease fees for going over mileage, not adhering to the required maintenance schedule, or damages to the interior or exterior of the car.

How To Negotiate a Car Lease Buyout

If you want to own your vehicle and think a car lease buyout is a good option for your finances, here is how to negotiate a car lease buyout:

• Speak to your leasing institution: When you’re getting close to the end of your lease term, reach out to your lending institution to start the end of lease negotiation and inquire about your options. They can tell you whether there are any fees associated with facilitating a buyout.
• If you need to finance the buyout, apply for pre-approval: Some Fort Collins customers can pay for their car lease buyout in full if they’ve been saving money for it, but you can also get a loan for your car lease buyout. If you need a loan, apply for pre-approval with several lenders to see if you qualify and to compare rates.
• Proceed with end of lease negotiation: You might be able to negotiate your car lease buyout down to a lower price. Once you agree on a price you’re comfortable with and have secured financing, all that’s left to do is sign the agreement and finalize the buyout!

Learn More at Fisher Acura

Now that we’ve answered the question, “Can you negotiate a lease buyout?” choose the option that is best for your Thornton lifestyle and budget. If you have any questions, contact us. We’re here for you!