Should I Buy Out My Lease?

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If you leased your vehicle in Winter Haven and the terms of the lease are coming to a close, you may be wondering about your options. A common question we hear at Cadillac Lakeland is, “Should I buy out my lease?” The answer to this question depends on a few factors. 

You can return the vehicle to the dealership and settle any remaining fees, or you can negotiate a car lease buyout. This is when the dealership allows you to purchase a vehicle at or before the end of a lease contract for the cost of the remaining value. There are two different types of car lease buyout options to choose from, so it’s important to be aware of the differences. Explore your options below in addition to learning the pros and cons of a lease buyout. 

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Lease-End Buyout

A lease-end buyout is the most common option in Bartow, which is where you pay what the vehicle is expected to be worth by the end of the lease period. Usually, you agree on this price at the time you lease the car. When is a lease-end buyout beneficial? 

  • You have fallen in love with the vehicle you have been leasing.
  • The car has needed little to no repairs while it’s been in your possession.
  • 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.

Why else is a lease buyout a smart option? You know the history of the vehicle unlike with other used cars that have had at least one previous owner. 

Early Lease Buyout

An early lease buyout makes it possible to purchase your vehicle before the end of the lease contract. Keep in mind that this option is not allowed in all lease contracts. How is price determined with an early lease buyout? 

  • 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 could be on the hook to pay the difference. Why do some Brandon drivers choose an early lease buyout? 

This usually happens when a driver is concerned about lease penalties for going over mileage limits or not maintaining scheduled services. It may also be due to the fact that there is damage to the interior or exterior of the vehicle.

Pros and Cons of a Lease Buyout

Advantages:

  • You could take advantage of auto financing deals and you’ll likely be able to lock in a lower sales price. This is due to the fact that the vehicle probably costs more in today’s market than the amount that was pre-set when you leased the car. 
  • You can avoid the hassle of car shopping.
  • You’ll own an asset.
  • You’ll no longer have to deal with never-ending lease payments. 
  • You are not restricted by mileage limits.

Disadvantages:

  • You may have a higher monthly payment.
  • You no longer get to enjoy the perks of leasing.

Learn More About Lease Buyouts at Cadillac Lakeland

Do you still have questions about whether or not you should buy out your lease? That’s ok! Reach out to the team at Cadillac Lakeland, and we can address any concerns you may have.