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 learn more about these two different types of lease buyouts, and find out more about how to buyout a lease!

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.

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Posted in Finance