What Is a Lease Buyout?
If your Jaguar auto lease is about to end, you have at least two options: return the car to the dealership where you got it and settle any remaining fees, or negotiate a car lease buyout. What is a lease buyout? If you’ve got questions, you’re not alone. Learn the lease buyout definition below, and contact us today if you’d like to learn more!
Types of Car Lease Buyouts
A car lease buyout is when a dealership allows you to purchase the car you’re leasing at or before the end of the lease term. There are two different kinds of car lease buyouts, and it’s essential to know your options. Compare the different types below to see which is the better option for you and your Rumson commute.
Lease-End Buyout
A lease-end buyout is the most common for Colts Neck drivers. The lease-end buyout means you pay the vehicle’s expected value at the end of the lease period. Typically, this price point is already agreed upon and stated in your lease agreement. This may be a good choice if:
- You like the vehicle and want to keep it
- You haven’t needed to make major repairs since you’ve had the vehicle
- There’s no other vehicle, at a similar price, that you’d prefer to drive around Red Bank
- You can qualify for a reasonable interest rate to finance the car lease buyout price
One of the perks of a car lease buyout is knowing the condition and history of the car you’ve been leasing, unlike when you purchase a standard used vehicle.
Early Jaguar Lease Buyout
An early lease buyout allows you to purchase your vehicle before the end of the lease term. Check your lease agreement because not all lease contracts permit this. Before you do an early lease buyout, make sure it’s worth the long-term investment to buy rather than lease. The price you’ll pay is determined by:
- The remaining amount you still owe on the lease
- The lease-end residual value determined in your original lease contract
- If your vehicle has depreciated faster and is below market value, you may have to pay the difference
You might consider an early lease buyout if you’re worried about lease penalties for going over the allotted mileage, failing to perform scheduled maintenance for the car, or damages to the exterior or interior of your vehicle.
How Does a Jaguar Lease Buyout Work?
Now that you know the lease buyout definition, how does a lease buyout work? Jaguar Monmouth can help. If you want to own your vehicle and you believe a car lease buyout might be a good option for you, here are the steps:
- Talk to the finance team where you purchased it: When you’re getting to the end of your lease term, contact the dealership that’s carrying your lease to investigate your options. They will share how a car lease buyout works at their dealership and whether there are any fees required with your buyout.
- If you are financing the vehicle buyout, apply for credit pre-approval: If you need to finance your car lease buyout, take a few minutes to apply for financing with a few different lenders. You might be able to get financing through the same dealership you have your lease with, but it never hurts to explore your options.
- Negotiate and finalize your car lease buyout. You may be able to settle your car lease buyout at a lower price. Once you’ve negotiated a price you are comfortable with and secure your financing, all that’s left to do is sign the documents and drive home!
Learn More About Auto Leasing at Jaguar Monmouth
If you’ve determined that a Jaguar lease buyout is right for you, let us know if we can help. Reach out to our finance team If you have any questions. We’re here for you, so don’t hesitate to contact us!
