What Is a Lease Buyout?

November 29th, 2018 by

Man in suit working on calculator

A lease buyout is when a dealership allows a driver to “buy out” a leased vehicle at the end of a lease contract. However, Taunton drivers should be aware that there are two different types of lease buyouts. Take the trip to Silko Honda to see for yourself how the two different types work and which is best for your Fall River drive!

Lease-End Buyout

This option is the most common. The lease-end buyout requires you to pay what the vehicle is expected to be worth by the end of the lease period. Normally, this price point is agreed upon before you sign the lease agreement. This choice is a good deal if:

  • You’re happy with the vehicle
  • There have been little to no repairs since you’ve had the car
  • There’s no other vehicle, at a similar price point, that you’d like better
  • You can get a good interest rate to finance the buyout price

Another perk is knowing the condition and history of the vehicle you’ve been leasing, unlike when purchasing a different used car.

2019 Honda Accord Sedan Driving on Wet Road

Early Lease Buyout

When you choose the early lease buyout option, you can buy your vehicle before the lease contract ends. However, be aware that not all lease contracts allow this. Check beforehand if this is an option available to you. Before going forward, you also want to be sure that this is the right long-term option for you, so ensure that leasing or buying is right for you:

  • The lease-end residual value on your original contract
  • The amount you still owe on the lease
  • If the vehicle has depreciated quicker and is below market value, you might have to pay the difference

Most times, buyers consider this buyout when concerned about lease penalties like going over mileage, not maintaining scheduled services or damages to the interior or exterior of the vehicle.

2019 Honda Accord Interior

Stop by Silko Honda to Learn More

For more information, take the trip from Taunton to Silko Honda! Be sure to check out our many Honda lease deals, and contact us with any questions you may have.

More from Silko Honda

  • Honda CR-V 2020 Price

    How much is a new Honda CR-V? Rest assured, drivers from Brockton to Raynham are raving about the new Honda CR-V price. With the great reviews this vehicle has received in the compact SUV category, many drivers are gravitating toward it. Plus, with newly available hybrid options, the CR-V is now a great choice for…

  • How Much Can a Honda Pilot Tow?

    Finding the right SUV for you and your family is crucial. Fortunately, the new 2020 Honda Pilot delivers! Its powerful engine and impressive towing capacity will make you feel confident on those weekend adventures around Raynham. The Honda Pilot also comes with a host of towing features to ensure a seamless tow every time. Wondering, “How much…

  • 2020 Honda Passport Reviews

    The sporty Honda Passport has had reviewers and Brockton drivers taking notice all year. This versatile SUV has all the features to help you out, whether you’re on-the-go in Taunton or hitting the road cross-country. The Passport is shorter and more agile than the 3-row Pilot, yet provides an incredible amount of interior space for…

Posted in Finance