Lease-End Buyout
A lease-end buyout is the more common option of the two. When you opt for a lease-end buyout, you usually have to pay what the vehicle is expected to be worth by the end of the lease period. In most cases, this value is determined at the time you sign your lease. If you are wondering whether this is right for you, consider the following factors:
- 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
One of the main benefits of a lease-end buyout is that you know this vehicle inside and out, which can’t be said for another used car.
Early Lease Buyout
Your other choice is to purchase the vehicle before your lease ends. Keep in mind that this is prohibited with some lease contracts, so you will need to take a look at the terms of your contract beforehand. Make sure it is worth the investment to opt for an early lease buyout by weighing the pros and cons of leasing vs. financing. Note the history of the vehicle. As your lease terms are coming to a close, the price is determined by:
- 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
San Diego drivers who consider an early lease buyout usually do so if they have gone over mileage limits, did not keep up with routine maintenance, or if there is damage to the vehicle. In those cases, the driver would be responsible for paying penalties.
BMW of Escondido Makes Leasing Hassle-Free
We’ve now answered the question, “How does a lease buyout work?” If you think that either of these options would be a good choice for you, do not hesitate to contact the team at BMW of Escondido for more information abut used vs. CPO models, and more. We would be more than happy to further discuss your options with you.
