Lease Buyout

A lease buyout of a car is when the leasing customer decides to buy the car at or near the end of their lease. Most leases allow this, and it can be a good idea, depending on the buyout term. Many customers will need to take out a loan from another lender to complete the buyout, which basically becomes a variation of a car loan.

As with any transaction, it's a good idea to weigh your purchase options when it comes to the buyout. Does the buyout make economic sense? Are you getting a good deal? A smart strategy is to let the lender contact you about a buyout, instead of the other way around. Let a leasing agent become a motivated seller, instead of giving the lender the impression you're a motivated buyer.

If you do decide to proceed with a lease buyout, then it's time to weigh your car finance and loan options. Do your due diligence and shop around for the best possible loan.