What Is a Lease Buyout?

What is a lease buyout, and when is it a good idea? If you decide that you’d like to own the vehicle that you’ve been leasing, a car lease buyout allows you to finance and purchase it for a price that will usually be listed in your contract. However, any driver wondering about how a lease buyout works will still have to distinguish between the lease-end buyout and the early lease buyout. We’ve covered both options in detail below.

Lease-End Buyout

It’s far from uncommon for Stamford-area drivers to fall in love with the BMW vehicles they’ve chosen to lease. If you find that you’re interested in keeping the vehicle that you’ve been driving under contract, and you’ve reached the end of your term, you’ll need to execute a lease-end buyout.  Here’s when a lease-end buyout is a good idea:

• You love the vehicle you’ve been driving, and no other vehicle at a similar or lower price would satisfy you.
• The vehicle has held up well while it’s been in your possession; you haven’t been saddled with numerous repairs and extra responsibilities.
• Your vehicle’s real estimated value is higher than the lease buyout price that’s listed in your leasing contract.
• You can finance the vehicle for a good interest rate with the dealership, or with another lender near White Plains or Darien.

Early Lease Buyout

How does a lease buyout work? There are some key differences to be aware of if you’re going to attempt an early lease buyout:

• Most drivers will only consider an early lease buyout if they would otherwise have to pay numerous fees or penalties on the day that their contract ends.
• Not all leasing contracts give you the option to perform an early buyout.
• The price of an early lease buyout is determined by the vehicle’s estimated residual value at the end of the leasing term, but you will also have to pay the amount you still owe on your lease.

If you’re considering a lease buyout, you might want to compare the benefits of leasing vs. financing in detail.

Learn More at BMW of Greenwich

We’re happy to answer any and all of the financing and insurance questions on your mind. Get in touch with our financing team today to learn more about the lease buyout definition, or explore some of our car-buying tips that respond to common questions. Just make sure to check out our Greenwich lease and finance offers, too!