What is a Lease Buyout?

Woman shaking mans hand over a car contract clipboard with car keys

 

When you reach the end of your car lease, you have a few options to explore. You can either return the car to a dealership and find a new model, or you can negotiate a car lease buyout instead. What is a lease buyout and why is it a good option for many drivers? The “lease buyout” definition is when you purchase your leased vehicle for the price listed in your contract. This means you move from leasing to financing your car, which will lead to eventual ownership. Find out how the Honda lease buyout works, and if you’re planning on buying out your lease in Ohio, you can start the process with Honda of Mentor today!

 

 

Honda Lease Buyout: Lease-End Buyout

The most common Honda lease buyout option is the lease-end buyout. This means you wait until the end of your leasing period, and then you agree to pay the amount indicated in your original lease agreement. This amount is typically negotiated at the beginning of your contract, so be sure to check your paperwork to refresh your memory. This is a great option if:

  • You are satisfied with your current vehicle.
  • Your car is in good condition with few to no repairs.
  • There is no other vehicle at a comparable price point that you’d prefer.
  • You can secure a good interest rate to finance your vehicle.

Honda Lease Buyout: Early Lease Buyout

Another option is the early lease buyout. This isn’t available in all cases, so double check your contract or ask our finance experts if you have any questions. The most common reason that drivers choose the early lease buyout is to avoid penalties. For example, if you’re close to exceeding your mileage or your car has damage, an early lease buyout might be a worthwhile choice. But, keep in mind that the price will be determined by: 

  • The lease-end residual value indicated in your original contract
  • The amount you still owe on the lease
  • The amount of depreciation that has occurred. If your car has depreciated to the point that it is under market value, you’ll likely have to pay the difference.

How Does a Lease Buyout Work? 

How does a lease buyout work in Painesville or Willoughby? Here are the basic steps:

  • Speak to your leasing institution. Check in with your leasing institution when you’re getting close to the end of your contract. This gives you the opportunity to ask questions about your lease-end options and any potential fees associated with the buyout.
  • If you’ll be financing the buyout, apply for pre-approval. If you aren’t paying the full amount at the time of your buyout, consider a car lease buyout loan instead. You can apply for pre-approval from the comfort of your own home to get a head start on the process.
  • Negotiate and finalize the buyout. You have the option to agree to the original buyout price or try to negotiate to a lower figure. Once you’ve settled on a price point, just complete the paperwork and finalize the buyout.

Explore Your Leasing Options in Mentor, OH at Honda of Mentor

We’ve gone through the basics of Honda lease buyouts for Mentor and Eastlake drivers, but if you still have questions, don’t hesitate to reach out. Contact us for more information about your leasing and financing options, and visit our dealership in Mentor to chat in person!

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