What Is a Lease Buyout?

A lease buyout is when the dealership allows you to “buy out” the vehicle before the end of the lease contract. There are two different types of lease buyout options to choose from. Learn more about both options to see which can better benefit you and what you’re looking for. Our finance experts are here to answer your questions in Mamaroneck.

Lease-End Buyout

A lease-end buyout is the most common option. This requires you to pay what the vehicle is expected to be worth by the end of the lease period. Typically, this price point is agreed upon before signing the lease agreement, so you’ll be able to estimate this by looking at your agreement paperwork. This option is a good choice for you if:

• 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

Another benefit of this option is that you know the condition and history of the vehicle you’ve been leasing.

Early Lease Buyout

With an early lease buyout, you can purchase your vehicle before the end of the lease contract. Not all lease contracts are eligible for this options, so be sure to check beforehand if this is something you’re interested in for you Harrison driving needs. You’ll also want to be sure it’s worth the long term investment to buy instead. With this, keep in mind the history of the vehicle. Near the end of the lease, 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

In most cases, this is considered if you’re concerned about lease penalties like going over mileage, not maintaining the scheduled services, or damages to the interior or exterior.

Learn More at BMW of Mamaroneck

After learning about how a lease buyout works, you can choose the option that’s best for you. In the meantime, if you have any questions about our models, BMW 3 Series lease deals, BMW convertible lease options, and more, don’t hesitate to contact us! If you need help deciding, our finance team can help you assess your options in New Rochelle.