What Is a Lease Buyout?

Car dealer giving car key to buyer
 

Leasing a new INFINITI from INFINITI of Downtown LA offers a fantastic and cost-effective way to put a world-class new vehicle in your Glendale garage. Whether you favor a QX80 for weekend getaways to Vegas or Tahoe, a QX60 for tailgating at Dodgers games, or a zippy Q50 for Downey commutes, we’ve got you covered with plenty of selections for a new vehicle lease in Los Angeles. 

When your car lease is about to expire, you have two options:

  1. Return the vehicle to the dealership and settle any remaining fees.
  2. Negotiate a car lease buyout. 

We explain a lease buyout definition with our guide here. We’ll answer, “How does a lease buyout work?” and “What is a lease buyout?” Later, if you have more questions about a car lease buyout, you can contact us or call 213-927-5029, and we’d be happy to help!

 

What is a Lease Buyout at INFINITI of Downtown LA? 

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. There are two types of car lease buyout options to choose from, which is why it’s important to understand your options.

Car Lease Buyout Option 1: Lease-End Buyout

This car lease buyout option is the most common. The lease-end buyout requires you to pay what the vehicle is expected to be worth by the end of the lease period. You’ll see the price agreed upon in the car lease agreement.

You’ll want to go with this car lease buyout option if:

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

Car Lease Buyout Option 2: Early Lease Buyout

With this car lease buyout option, you can purchase your vehicle before the end of the lease contract. Not all contracts allow an early car lease buyout. You must check before you sign on the dotted line if this is allowed at your chosen dealership. 

Is an early lease buyout worth the long-term investment to buy instead of a lease? With this lease buyout definition, keep in mind the history of the vehicle you’ve driven and the price, which is determined by:

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

Consider this car lease buyout option if you:

  • Have concerns about lease penalties like going over mileage
  • Have not maintained scheduled services
  • See damage to the interior or exterior of the vehicle

What is a Lease Buyout: Advantages

There are several advantages to car lease buyout:

  • Lower price than a new vehicle
  • You already know the vehicle’s ownership history
  • You’re familiar with the vehicle’s quirks
  • Payment history with the dealership (which could lower your auto loan interest rate)
  • Similar to buying a certified pre-owned model
  • The vehicle has been expertly maintained by our factory-trained service center staff
  • And more!

How Does a Lease Buyout Work? 

If vehicle ownership is your ultimate goal and a car lease buyout is a good option for your budget and finances, how does a lease buyout work? 

See what steps you need to take: 

  • Speak to Your Leasing Dealership. Ask the dealership about your options. They can tell you more about how a car lease buyout works with them, including any fees associated with the buyout. 
  • Apply For Auto Loan Financing. 80% of auto owners have some kind of auto loan. Apply for financing before the end of your lease to see what kind of terms you could get.
  • Negotiate and Finalize The Buyout. You can negotiate the terms of your car lease buyout ahead of time based on your history with the vehicle. Talk to the dealership for more information.

Learn More About a Car Lease Buyout at INFINITI of Downtown LA

We’ve answered, “How does a lease buyout work?” If you’re ready to proceed, choose the option that works for your Van Nuys lifestyle. Contact us or call our finance center at 213-927-5029 to speak with someone on our team

 

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