Can You Negotiate a Lease Buyout?

Some buyers aren’t sure whether leasing or financing a car is a better option at the time of purchase. If that’s the case for you, leasing offers more flexibility later on. That’s because you can decide to buy out your lease at any point — turning your leased vehicle into a financed vehicle — but a financed vehicle cannot be turned into a lease. 

Can you negotiate a lease buyout with your dealership? While most lease contracts include a pre-determined buyout price, many Mesa drivers are able to negotiate for a better deal. Read below for a detailed look at your lease buyout options from the Cactus Jack's Auto finance center, and see our car-buying guide for more info.

How to Negotiate a Car Lease Buyout

If you can show that your vehicle is worth more than the estimated price in your lease contract, you should be able to negotiate a lower buyout price. Here’s how to prepare for an end-of-lease negotiation with your dealership:

• Do your research – When you enter your leasing contract, your dealership estimates the market value of your vehicle at the end of the term. This figure is included in your leasing contract, but it’s not set in stone! Conduct your own research to see if the actual market value is lower than the projected value. If so, you can use this information as leverage for a lower buyout price.
• Negotiate directly with your financier – Unless you’re financing in-house through your dealership, you should find out if your financial institution is flexible about the buyout price. If they’re willing to accept a lower price, you can use it to your advantage in a buyout negotiation.
• Make an offer – Armed with your research, you’re now ready to approach your dealership with a lease buyout offer. If you’re able to prove that the estimate in your contract isn’t accurate, you will be offered a lower price.

Lease-End Buyout vs. Early Lease Buyout

Next, we’ll talk about how timing may impact how to negotiate a car lease buyout. While most Surprise drivers wait until the end of the lease term, you do have the option to buy out before the lease is up. Here’s what you need to know about your lease buyout options:

• Lease-End Buyout – The buyout price is determined at the start of your lease, and is based on the residual value of the vehicle when the lease term comes to a close. As you read above, an end of lease negotiation can result in a lower buyout price in certain situations.
• Early Lease Buyout – You may choose to buy out your lease early in order to skirt mileage penalties and service fees. To determine an early lease buyout price, your dealership will add the vehicle’s estimated lease-end value to the amount you still owe on the lease.

Lease or Buy Your Next Vehicle in Phoenix 

Now that you’re familiar with how to negotiate a car lease buyout — whether at the end of your lease term or earlier — you can start moving forward with a Glendale-area dealership! Reach out to a Cactus Jack's Auto location near you at %%di_phone_number%% to explore the lease buyout process, how to trade in your current car, and more.