What Is a Lease Buyout?

2021 Mercedes-Benz GLA exterior parked

If you’ve leased a new car and decide you don’t want to part with it, there’s often the option of a car lease buyout, but what is a lease buyout? A car lease buyout is when you “buy out” your current lease before your contract expires. This allows you to choose to own the car rather than return it to the dealership in San Antonio. Learn more specific lease buyout definitions as well as answers to “how does a lease buyout work?” from our finance team below. 

Car Lease Buyout Definitions: Lease-End Buyout

The most common buyout option is a lease-end buyout. How does a lease-end buyout work? With a lease-end buyout, you pay what the vehicle is expected to be worth at the end of your lease period. Typically, you and whoever is leasing the car to you will decide on this price before you sign the lease. This could be a good choice for you if:

  • You’ve fallen in love with your current lease
  • You haven’t had to pay for many repairs while you’ve had the car
  • There are no other vehicles in the Alamo Heights area at similar price points that you’d rather have
  • You can finance your buyout at a good interest rate
  • You like the idea of already knowing the history of your vehicle. You’ve been the only one driving it after all 

Car Lease Buyout Definitions: Early Lease Buyout

The second option is an early lease buyout. So, how does an early lease buyout work? For an early lease buyout, you purchase your vehicle before your lease contract is up. This isn’t possible for all lease contracts, so double check the terms of your contract. In this situation, the buyout price is determined by: 

  • The lease-end residual value on your original contract
  • How much you still owe on the lease
  • If the vehicle has depreciated quicker and is below market value, the difference between the vehicle’s value and the agreed upon terms.

This option is best for Shavano Park-area buyers who are worried about lease penalties like mileage, lack of routine maintenance, or damage to the vehicle.

You Can Lease or Finance at Mercedes-Benz of San Antonio

At our dealership in San Antonio, you can find the perfect car to lease or purchase. Now that you know the answer to “what is a lease buyout” and if you’ve leased from us and you’d like to buyout your vehicle, please contact us. We’ll be happy to walk you through the process. 

 

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