What’s a lease buyout?
It’s the option offered to someone who is leasing a car to buy that car at lease end, or prior to lease end. To “buy out” your lease means you purchase your vehicle from the lease company, either with cash or a loan. Most (but not all) lease contracts allow a buyout, and some restrict the time during which a buyout option may be exercised. You should read your lease contract to determine if you have any restrictions.
You might consider a buyout if you want to continue driving your car after the lease ends. Since you know the car's history and condition, it makes a great purchase, without the uncertainties of buying a used car from a dealer or stranger.
If you've exceeded the mileage limits of your lease or have excessive wear or damages, and you want to try to avoid associated penalties, an early buyout or early termination is a viable option.
There are normal and early lease buyouts. Normal buyouts generally occur at the end of your lease and the buyout price is typically the lease-end residual value stated in your lease contract, although this price is sometimes negotiable. Early lease buyouts occur before lease-end. While this type of buyout is practical, be aware that the lease company may decide to handle your request as an early termination, which is quite different — and more costly.
Source: LeaseGuide.com
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