What Is a Lease Buyout?

When your car lease is coming to its end, you can choose one of two options. Most Warren drivers choose to return the vehicle to a dealership and lease a new model. But, there is a second option: buying out the lease. The standard lease buyout definition is when a dealership lets you buy the vehicle before or at the end of your lease for however much its remaining value costs. There are a couple of different car lease buyout options and some things we think you should know. Take a look at this lease buyout guide put together by the finance center at Apostolakis Honda to see what your options are.

How Does a Lease Buyout Work? 

Here’s what the process of a car lease buyout looks like: 

• Talk with Your Leasing Company: Since every company is different, talk with your leasing company to ask about your options. They’ll be able to tell you what your options are with them, including if there are any fees for early buyouts. 

• Apply for Financing: If it makes sense and you’re able to, financing a lease buyout is an option. If you’d like to finance your lease buyout, apply for financing with different lenders to compare options. You can usually get financing through the same dealer you leased the car from. At Apostolakis Honda, you can apply for financing online to get instantly approved!

• Negotiate the Buyout Price: The price the dealership tells you might not always be set in stone. There may be some room to negotiate a lower car lease buyout price. Every dealership near Boardman is different, but at Apostolakis Honda, our prices are always fair and negotiable. 

Car Lease Buyout Options

Now that you know how a lease buyout works, you’ll need to know your options. There are two different buyout options: 

End-of-Lease Buyout

End-of-Lease Buyout Definition: This option states you have to pay what the vehicle will be worth at the end of the lease. The final price is usually determined when you sign the lease agreement at the beginning of the term. 

How to Know If This Is the Best Option: 

• You like the car you’re leasing. 
• You’ve barely had to make any repairs on the car if any at all. 
• You don’t like any other similarly-priced option. 
• The interest rate to finance the car lease buyout price is good. 

Early Lease Buyout

End-of-Lease Buyout Definition: This is less common among Youngstown drivers, but this option allows a driver to buy the car before the lease term is over. This isn’t allowed by every contract, so it’s recommended to check and see if this is an option. 

Things to Consider Before Choosing This Option: 

• Lease-end residual value on the original contract
• Amount still owed on the lease
• Potential charge of the difference between the rate of depreciation and 
• If the vehicle has depreciated faster and is below market value (you might have to pay the difference)
• If there’s a penalty fee for going over the mileage limit
• If there’s a penalty fee for not having the vehicle regularly serviced
• Paying for damage to the vehicle

Which lease buyout option will you choose? Whatever you decide, remember that can return your Honda lease at our dealership even if you didn’t lease from us originally. You can also go over your lease options with our finance team even if you didn’t lease from us originally. 

Learn How a Lease Buyout Works at Apostolakis Honda!

If you need to return your Honda lease in Cortland or are curious about purchasing your lease, then contact us! We’ll answer any questions you have about the lease and recommend your best options.