How to Buy Out Your Lease or Lease End Options
If you are enjoying your leased vehicle and interested in purchasing it, rather than returning it to the dealership, a lease buyout may be a good option to consider.
What is a lease buyout?
A lease buyout is the process of purchasing your leased vehicle before or at the end of the lease term, allows you to purchase the car at the end of the lease instead of turning it in, if the lease contract allows.
Whether or not buying out a leased car is the right move depends on a few things.
Mainly, you should consider the costs associated with a lease buyout and compare them with the cost of purchasing or leasing a different vehicle.
Wear and tear, mileage, and the current market can affect the value of the car, which you should keep in mind when considering a lease buyout. It may not be a good idea to buy out your lease if the all in cost is more than the car is worth. Keep in mind, with some manufacturers there are fees to buy the car out, and you are responsible for any remaining taxes on top of the buyout purchase price.
How Do You Buy Out Your Lease?
You can purchase your lease at the end of the lease contract, or beforehand. The lease contract will show the price of the vehicle, plus any remaining payments or fees. At Ruge's, we can help to facilitate the lease buyout, whether you are looking to finance the balance, or pay for the vehicle outright. Steps to Buy Out Your Lease
Review Your Lease Agreement or give us a call to start reviewing your lease agreement to understand the terms and conditions of the buyout. Keep an eye out for any purchase or buyout fees. We then contact the leasing company on your behalf to get the total payoff, including all fees. We can assist in getting the financing secured, through one of our banks.
Complete the Paperwork: Sign the necessary documents, including a bill of sale, transfer of ownership, and any financing agreements. Be sure to contact your insurance company, and in most states the registration will need to be reissued.
Make the Payment: Pay the agreed-upon buyout amount. This can typically be done through a certified check, wire transfer, or other acceptable methods. If financing, these terms will be decided by the finance institution.
Receive Title and Ownership: Once the payment is processed, you will receive the title and become the owner of the vehicle.
Benefits to Buying Out Your Lease
Before deciding on a lease buyout, carefully consider your financial situation, the condition of the vehicle, and your long-term transportation needs. It's advisable to consult with a financial advisor or an automotive expert if you have any doubts.
1.
Avoid lease-end penalties and fees
2.
Continue driving a vehicle that you like!
3.
Continue driving a vehicle that you have maintained, and know the exact history of.
4.
If car shopping isn't your thing, you can put it off for awhile until you decide on something new!
