What Is A Lease Buyout?

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Whether you're currently leasing a Lincoln SUV or you're considering it, you've probably heard about a lease buyout. But what is a lease buyout? A lease buyout allows you to buy out the vehicle before or at the end of the lease term. How does a lease buyout work​? Learn more about what a lease buyout is and how it works with this helpful guide from the finance experts at Lincoln of Lafayette. Visit us for your next new car lease or to finance a new or pre-owned vehicle near Frankfort.

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How Does A Lease Buyout Work?

There are two lease buyout options West Lafayette drivers can choose from: a lease-end buyout and an early lease buyout. A lease-end buyout is when a lessee purchases their vehicle at the end of the lease. With an early lease buyout, they can buy the car before the lease term ends. There's no right or wrong option, and it all depends on each driver's individual circumstances. 

 

Here are some things to know about both options: 

Lease-End Buyout

This option usually requires you to pay the vehicle's estimated value at the end of the lease period. This price point is agreed upon before you sign the lease agreement. 

A Good Choice If: 

  • You like the vehicle
  • There have been few 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 secure a solid interest rate to finance the buyout price

Early Lease Buyout

Not all lease contracts allow this, but it lets you purchase your vehicle before the lease ends. You'll want to check your contract to see if this option is allowed. Here's what determines the price toward the end of the lease:

What Determines Its Price:

  • The estimated lease-end residual value on your original contract
  • The amount you still owe on the lease
  • The difference between the vehicle's depreciation and its market value (if the vehicle is below market value)

What Are Lease Buyout Loans?

There are loan options specifically for lease buyouts. Just like a regular loan, you'll have to fill out an application to get approved. You can get a loan from a bank or from a dealership near Frankfort, like ours. Our finance center will help you decide if a lease buyout loan is the right choice for you, and we'll help you start the application process. 

 

For more car-buying tips and other helpful information, reach out to Lincoln of Lafayette. 

Learn More About Lease Buyouts In Lafayette

How does a lease buyout work at Lincoln of Lafayette? Whether you are ready to buy out your existing leased vehicle or want to learn more about acquiring a new lease, it's time to contact our financiers to explore your options near West Lafayette. We look forward to working with you at Lincoln of Lafayette.