What is a Lease Buyout?

If you adore your leased Cadillac XT4 and don’t like the thought of returning it to the car dealership, you might want to consider doing a car lease buyout. What is a car lease buyout, and how does a lease buyout work? How do you know if it’s the best option for your Ocala budget and lifestyle? The lease buyout definition is when you buy the car you’re leasing, so you don’t have to return it to the auto dealership (if your lease agreement permits it). Keep reading to learn how a lease buyout works, and contact the Sullivan Cadillac finance specialists with any leasing or financing questions.

When to Do a Car Lease Buyout

The lease buyout definition means you pay a pre-determined amount for your car when your lease term ends so you can keep it. Usually, this price is noted in your lease contract, but you may still be able to negotiate it down further. A car lease buyout may be a good option for your The Villages commute if:

• You love your car.
• It’s been a dependable vehicle with hardly any repairs required.
• You prefer your car over any other at a similar price.
• You can negotiate a reasonable interest rate for your lease buyout loan (assuming you don’t have cash).
• You have exceeded the lease mileage limits or have excessive wear-and-tear or damage that means you’ll have to pay significant fees.

A primary advantage to doing a car lease buyout is knowing the history and condition of your leased vehicle.

Early Car Lease Buyout

So, now you know the lease buyout definition. Are you wondering if you can do an early car lease buyout (when you purchase your vehicle before the lease term is over)? Some lease contracts around Lady Lake don’t allow it, so check your paperwork to see if you have that option. At the end of your auto lease, the price you pay for your car is determined by one of these methods:

• The remaining lease balance.
• The predetermined lease-end residual value of your car (stated in your lease agreement).
• If your car’s value is now below market value because of unanticipated depreciation or wear-and-tear, you may have to pay the difference.

How Does a Lease Buyout Work?

So, how does a lease buyout work anyway? Simply follow the steps below:

• Check with your auto lender to see if it’s allowed: Near the end of your auto lease, contact your lending company to see if it’s possible to do a car lease buyout and begin negotiations. Ask if a lease buyout is associated with fees and what they are.
• If you need to finance the car lease buyout, apply for an auto loan: If you don’t have the cash to buy your car, you’ll need a loan. You can apply for loan pre-approval at Sullivan Cadillac online or in person with our finance team.
• Start end-of-lease negotiation: It’s worth seeing if you can negotiate your car lease buyout to a fair price for both parties and meets your Gainesville budget. Research your car’s market value on Cars.com or Kelly Blue Book and ask the dealership for a similar price for your car lease buyout.

Lease Your Next Cadillac From Sullivan Cadillac Today

Now that you will never have to ask, “What is a lease buyout,” again, don’t hesitate to contact our finance team for help. Typically, you can return your leased vehicle to any authorized auto dealership. We’re here for all your automotive needs, from certified preowned vehicles to car service and auto financing. Let us know how we can help!