What Is a Lease Buyout?

Have you leased one of Cactus Jack's Auto’s used cars and really love driving it in Mesa — so much that you want to buy it? You can make it your own with a car lease buyout! What is a lease buyout? Essentially, it’s when you outright purchase a vehicle you’ve leased. There are two ways to do a car lease buyout, and our finance team is here to walk you through the basics of how a lease buyout works. 

Car Lease Buyout at the End of the Lease

We see this option most often because it gives drivers the full term of their lease to decide whether or not they want to keep the car for the Surprise commutes. How does this lease buyout work? You’ll pay the amount agreed upon when you originally signed the lease. This choice will work for you if you’re happy with the vehicle, haven’t needed any repairs, and you’re able to get a good loan rate when you apply for financing. 

Early Lease Buyout

The lease buyout definition doesn’t limit you to waiting until the end of your lease to purchase your vehicle outright. There are some occasions where a car lease buyout before the end of the lease is a good deal. Make sure your lease terms allow this. If they do, next you’ll want to make sure the car is worth the long-term investment. People most often consider this kind of car lease buyout if they’ve gone over the mileage limits of their lease in order to avoid penalty fees. What you’ll pay will be determined by the lease-end residual value on the lease contract plus the amount you still owe on the lease. You might have to pay this difference.

Get More Answers About Car Lease Buyouts with Cactus Jack's Auto

Now that you know the basics of a lease buyout definition, contact Cactus Jack's Auto for more information. We’re here to answer any questions, especially if you’re trying to decide between leasing and buying and want all the information about what a lease entails. Check out all of our car-buying tips and tricks so you have the information to make an informed decision about the best way to get your next car in Glendale.