Lease Buyout 

Deer Park drivers looking for a new vehicle can choose to buy or lease their car. And when the term of your lease is up, there's always an option to purchase the vehicle. So, what is a lease buyout, how does a lease buyout work, and when should you choose this option? Bayway CDJR has more advice on the car lease buyout definition below!

Lease Buyout Definition: Lease-End Buyout 

How does a lease buyout work at the end of the term? The most common form of a car lease buyout is a lease-end buyout, where you pay what the vehicle is worth at the end of your lease period. In most cases, the La Porte dealership that arranged for your lease will have anticipated this price point in your contract. So, when should you choose this form of a car lease buyout? 

  • When you're happy with your car
  • If there haven't been a lot of repairs on the vehicle
  • If you look for vehicles at similar price points and can't find anything as good
  • If you have a good interest rate on the buyout price 

You can even do a car lease buyout when you lease a used car!

Lease Buyout Definition: Early Lease Buyout

Another option, much more rare for Houston drivers, is a car lease buyout well before the end of the lease period. In fact, not all lease contracts allow this to happen. So, how does a lease buyout work if you do it before the end of the lease? The price of your vehicle is determined by: 

  • What you owe on the lease
  • The residual value on your original contract 
  • The difference between the current market value of the vehicle and the state of your vehicle

In most cases, drivers choose this option when they are trying to avoid costly fees and repairs associated with breaking the terms of the lease. 

What Is a Lease Buyout?: Car Lease Buyout Tips

Now that we've confirmed the lease buyout definition, let's go over some basic tips for getting the best deal on your car lease buyout: 

  • Talk to someone: It's a good idea to reach out to your leasing institution if you're planning on getting a car lease buyout. They can talk to you about the associated fees, conditions, and other factors on your particular lease contract.
  • If you'll be financing the buyout, plan ahead: Not all drivers pay out the amount of their car lease buyout in full. Just like with any other car, you can apply for financing with the leasing institution or even another one. It's always good to plan ahead and use tools like a payment estimator.
  • Negotiate: Don't be afraid to negotiate for your car lease buyout. Make a plan about which payment structure best suits your needs and talk about it with potential lenders.

Get Car Leasing and Financing Resources at Bayway CDJR

At Bayway CDJR, we're all about simplifying the car-buying and leasing process for Deer Park drivers. Our finance center helps people find great payment plans everyday! Please contact us today with any questions you may have about car lease buyouts, financing, and more.