How To Buy Your Leased Vehicle

A lease buyout could be a good idea as long as you shop around first.

How to buy your leased vehicle. Some dealerships are flexible on the buyout price but you re usually locked in after signing your lease contract. If allowed ask your buyer to write two checks. This is something likely provided at the start of your lease term as your car s purchase price is affected by its model year mileage and other factors. If a buyout option was part of your lease agreement you typically have the option to buy your leased vehicle at the end of your lease. If you know you want to sell the car ask your lease finance company if they allow a third party purchase which eliminates double taxation and fees.

Inform your leasing company that you want to buy the car. The buyout price refers to the amount required to purchase your leased vehicle. The leasing agent will notify you of any penalties or fees you may need to pay. Regardless when buying a lease you should at least have a decent idea of what your leased vehicle s value is at the end of the period. While you wait for them to call you shop around.

That way you can save some time trying to decide what to do at the dealership and get right to the negotiations on how much you re going to pay for your car and whether you ll pay with cash or take out a car lease buyout loan. At the end of your lease the cost to buy out your vehicle often corresponds to the residual value. Buying out your leased car can be a good deal. If your car is worth less than the purchase option price. You arrange for a used car loan get a check written to the lease company for the amount of the purchase receive the title register the car in your name with your local dmv office possibly pay sales tax and you re done.

The alternative is to return the car to the dealership. Your next step is to notify your dealer which may have already contacted you depending on how close you are to the end of your lease with your intention to buy the car. You may be able to buy your lease early most lessees will drive their leased vehicles until the end of the contract typically 36 months and return it to their dealer. Financing a leased car purchase is the same as financing any used car purchase. But a three year car lease is not set in stone.

If you can t afford to buy your leased vehicle outright you will need financing. Just make sure to shop for loans and be ready to negotiate price. You do not have to rely on your manufacturer s captive finance company. One to you for your equity and another to the lease company for the contract purchase price. Some companies including ifs specialize in financing lease buyouts and may be able to find you competitive terms.