Returning a Leased Car

Are you looking into upgrading your ride, but you aren’t sure how to do that when your lease isn’t up yet? Then a lease buyout may be an option. When you’re ready to make the switch, there are two options. You can return the vehicle to the dealership and settle any remaining fees, or you can negotiate a car lease buyout. So, what is a lease buyout? The basic lease buyout definition is when a dealership allows you to purchase a vehicle at or before the end of a lease contract for the price of its remaining value.

Leander drivers should know that there are two different types of car lease buyout options to choose from. So take a look at the different types outlined in our guide below to see which works best for you, then make your way to Covert Buick GMC Austin to browse our new vehicle inventory to find your next new ride.

Lease-End Buyout

The first option is a lease-end buyout, and it’s the most common option for Austin drivers. When you go with a lease-end buyout, it requires you to pay what the vehicle is expected to be worth by the end of the lease period. Normally, this price point is agreed upon before you sign the lease agreement, but be sure to reach out to our team if you want to know more about how this process works. This choice is a good deal if:

• You can get a good interest rate to finance the buyout price
• 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’re happy with the vehicle

Early Lease Buyout

As for the second option, you can choose an early lease buyout. With this option, you can purchase your vehicle before the end of the lease contract. It is important to keep in mind that not all lease contracts allow this, so be sure to check beforehand if this is the route you want to go. Before considering an early lease buyout, you’ll also want to be sure it’s worth the long-term investment to buy instead of lease. In this case, near the end of the lease, the price is determined by:

• The lease-end residual value on your original contract
• If the vehicle has depreciated quicker and is below market value, you might have to pay the difference
• The amount you still owe on the lease

In some cases, buyers consider this buyout when concerned about lease penalties like going over mileage, not maintaining scheduled services, or damages to the interior or exterior of the vehicle. Be sure to choose the option that is best suited to your needs and don’t hesitate to ask questions if you’re unsure.

How Does a Lease Buyout Work? 

With the lease buyout definition in mind, now it’s time to go over how the lease buyout works. How does a lease buyout work, and what can you expect from the process? Take a look below for a brief overview of the steps that you’re likely to take:

• 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 Round Rock 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 Covert Buick GMC Austin

So, how does a lease buyout work? Now that you know more, you can take the next step and choose the option that works best for your Cedar Park life and your day-to-day needs. Between the two car lease buyout options, assess your car loan, the wear and tear, and the purchase price to see if this investment is worth it for you. And remember, if you have any questions, feel free to contact us, and we’ll be happy to help! We can’t wait to see you on the Austin roads in your new ride!