What is an Auto Lease Buyout?
The amount of money you have to pay to own the car once your auto lease has expired is called the "auto lease buyout amount". Sometimes referred to as the payoff amount, the buyout amount on an auto lease should not be confused with the residual value. The residual value of an auto lease is the prediction of what the car will be worth at the end of the lease. It is sometimes different from the buyout price of an auto lease because of the security deposit refund.
Reasons to Consider an Auto Lease Buyout
Perhaps you don't want to part with your car. Perhaps the buyout amount of your contract makes purchasing your car a good deal. Knowing the car's mechanical history doesn't hurt either. These are all good reasons to agreeing to the buyout amount of your auto lease.
Determining the Buyout Amount of Your Auto Lease
The easiest way to see if you are getting a good deal is to compare the residual value of your auto in the lease contract to the True Market Value (TMV) of your car from a pricing guide. The industry leader for new and used car pricing is Kelley Blue Book (KBB) and is easily accessible online from our website at myAutoloan.com. If the TMV is the same or even higher than the residual value, then you are getting a good deal; however, other fees in the contract may affect the buyout amount of the lease.
Even if the TMV is less, you still may want to weigh in what the cost of shopping for a new car is worth to you. In some cases, dealers have even been known to negotiate the price of your auto lease.
Helpful Hints on Buying Out a Leased Auto
First determine the buyout amount of the car by calling the number on your monthly payment stub. Pick the lease end option from the phone recording and then ask an individual for the buyout amount for your leased auto. They will deduct your security deposit and give you the buyout amount for that date, which is not always the same amount for the end of the lease.
Understand that when a leased automobile is returned to the dealer, they only have a few options to choose from. Dealers can either put the car up for sale as a used car or auction the automobile at wholesale. Knowing this, puts you in a good position to negotiate with the dealer. Also, leasing popularity has increased the number of good used cars on the market. This influx has lowered prices making it more advantageous for the buyer.
Make sure you allow enough time to negotiate the buyout of your auto lease. Call the leasing company and make an offer. If you are talking to an appropriate representative, they will either refuse or counter-offer your price. Negotiating a buyout figure of your leased car can take several weeks and can sometimes last up until the return date of your automobile.
By all means, if you are over the allowed mileage limit or have excess wear and tear on the vehicle, do not tell the leasing representative. If they know this, they will have the upper hand on negotiations.
Financing for an Auto Lease Buyout
When it is time to decide to either turn your car back in or accept the buyout option of your lease, consider applying for financing online with myAutoloan.com. We can quickly offer varying rates and loan terms from multiple lenders to assist you in the buyout of your auto lease.