If you love the car you are leasing, you might meet the requirements to get a great deal on a car lease buyout. Learn about Lease-end buyouts.
If you decided to enjoy all of the advantages of a lease and have developed an attachment to your leased vehicle, or maybe you are about to be hit with *hundreds, if not thousands of dollars in termination fees, you may be thinking about a car lease buyout. With plenty of car loan options available, the prospect of snagging a great car loan rate from an auto loan lender and purchasing your leased vehicle can be tempting. Since you’ve already made monthly payments that will be applied towards the cost of the car should you buy it out, a lease buyout can seem like a great car loan value.
What is a Car 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 very 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. Even though we are still in the throes of an economic struggle, interest rates are currently the lowest they have been in years. That means, depending on the year of your vehicle, you may qualify for rates as low as 1.99%.
The Lease-end Buyout
With a lease-end buyout, since you’ve already paid for the depreciation of the vehicle, you will be expected to pay at least the residual value which was originally stated in the lease agreement. This is usually a great deal for all involved. Get started today! Simply click on "Apply Now", and you will be guided through our secure application process.
* NO OUT-OF-POCKET EXPENSES
* RATES AS LOW AS 1.79%
* AVOID TERMINATION FEES
Let Concierge do all of the hard work for you!
The following is a list of commonly used leasing terms to further assist you in understanding vehicle leasing. While we may not have used some of this terminology throughout our website, you may come across some commonly used leasing lingo in your research and shopping process. We hope this glossary will help you in understanding the logistics associated with vehicle leasing.
• Cap Cost – The leasing term that refers to the sales price of a vehicle.
• Cap Reduction – A down payment that will reduce the amount leased.
• Money Factor – The interest rate of a lease. This number is calculated into decimal form by dividing the actual interest rate percentage by 24 to determine the money factor.
• Sales Tax – Tax that is collected by the state in which a vehicle is purchased. When leasing, sales tax is only collected on the down payment and the monthly payment of the vehicle.
• Excessive Mileage Leasing – Programs that offer a pre-determined number of miles you're allowed to drive a vehicle without additional cost (or penalty). You can increase the amount of miles at the inception of the lease, which will lower the residual value and increase your payment. Or, you may reduce the pre-determined mileage allowance at the inception of the lease a process that will ultimately reduce your monthly payment. If you exceed the mileage as per the terms of the lease, you will be charged a penalty.
• Lease Term – Defined as the number of months you agree to lease the vehicle.
• Payment Options (end of lease) – Several payment options are available to you at the end of a lease, including refinancing, cash payments or extending your lease payments.
• Dealer Add-ons – Dealer add-ons are considered factory accessories, such as a moon roof, a CD-changer or leather interior. Some dealer add-ons are factored into a vehicle's residual value by the lender. However in most cases, aftermarket accessories such as custom wheels and tires are not considered dealer add-ons and are not factored into the vehicle's residual value.
• Minimum Advance – Some lenders set a minimum dollar amount they will consider for leasing a vehicle.
• Maximum Advance – Some lenders set a maximum dollar amount they will consider for leasing a vehicle.
• Over Advance – In some cases, when a person's credit is exceptional, the lender may extend the dollar amount beyond the maximum advance.
• Lease Assumption – In most cases, leases are not transferable from party to party. Check with your lender to determine individual policies in your area.
• GAP Insurance Leasing – An agreement to make a certain amount of monthly payments plus a pre-determined end-of-term value. In most cases, you may owe more than the vehicle is worth, yet your insurance company may only pay fair market value in the instance of total loss of the vehicle or theft of the vehicle. GAP insurance covers the difference between the cost to pay off the lender and the amount the insurance company will cover.