Honk if your lease is expiring soon! You've got a few options for what you can do next. Let's pump the brakes and find out!
When you are leasing a vehicle, and the lease is coming to an end, you might be wondering what you should do next. You can head back to the dealership, turn back in your leased vehicle, and find your next ride (whether you choose to lease again or buy another vehicle). Or you can do a lease buyout.
What is a lease buyout?
A lease buyout is when you decide to purchase your leased vehicle for the established price upon signing the lease contract – otherwise known as the Residual Value.
Why should you do a lease buyout?
A lease buyout can be a great option if you find that you enjoyed the vehicle you were leasing and would like to continue driving it. Depending on the case, the price to buy out your lease may be cheaper than buying a car in the current market. You could save money by buying out your leased vehicle and time by not having to search for another one.
Some things to consider before buying out your leased vehicle
Additional charges you may incur
If you have decided to buy out your lease before it expires, you may be charged some extra fees by the leasing company. Although, if the timing and current market are working in your favor, the price to purchase the leased vehicle plus the fees to buy out the lease early may still be less than what it would cost to purchase a similar car in today's market. So, be sure to do your research!
The current mileage and condition of the vehicle
As you've driven your leased car for the past couple of years, it may have experienced some everyday wear and tear, which will likely be acceptable to the leasing company. But, more significant damage could likely cost you. Additionally, if you've gone over the allotted miles within your lease contract, you could also incur fees. All of this sounds like it could cost a decent chunk of change if you trade back in your vehicle.
But, if you choose to buy out your lease, you can skip all of these costs!
Research your payment options
Unless you have the funds available, you'll likely have to finance the buyout. Try the Vibe Credit Union Lease Buyout Program! With rates as low as 1.89%APR*, we can finance your lease buyout and get you back on the road faster. Our awesome Loan Experts are ready to help you keep your vehicle!
The bottom line
Now that you know some details on what a lease buyout is, you're ready to make an educated decision on what to do next! With these tips, we hope you continue to enjoy your ride!
