What is a Lease Buyout?

Finance papers on a desk with car keys

What is a lease buyout? Going by the lease buyout definition, it is when you choose to purchase a vehicle before your lease agreement ends. At Jim Hudson Ford, Columbia-area drivers have two car lease buyout options from which to choose, each of which provides unique benefits. Determine which works best for you before connecting with our Finance Department near Chapin.

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How Does a Lease Buyout Work?

The way a lease buyout works depends on which of the two available options that Irmo drivers select. The first, a lease-end buyout, is the most common, and it requires you to pay or finance what the vehicle is worth at the end of your lease term (typically determined before you sign). Meanwhile, an early lease buyout allows you to buy your vehicle before your lease contract ends. Keep in mind that not all contracts permit this option, so make sure to consider this before you sign the lease.

Unsure which option is best for you? Keep the following in mind as you make your choice.

Why Opt for a Lease-End Buyout?

- You know the condition and history of the vehicle, since you’ve been driving it since it was brand-new.
- You’ve loved driving the vehicle, and there have been few repairs throughout the lease agreement, if any at all.
- You want to move away from the leasing process and go for ownership.
- You can secure a solid interest rate to finance the buyout price.

Why Opt for an Early Lease Buyout?

- You’ve determined that it’s worth the long-term investment to buy instead of lease (price calculated by lease-end residual value, amount still owed on the lease, and rate of depreciation).
- You’re concerned about lease penalties like mileage limits, maintenance, or interior or exterior damages.

Consult Jim Hudson Ford for Finance Advice

Now that you understand how a lease buyout works, you can make an informed decision on whether you want to complete a car lease buyout or continue leasing at Jim Hudson Ford. Get in touch if you have any questions, and make sure to check out more financial advice from our dealership, including whether you can trade in a financed car or how to get a car loan with bad credit.

Although every reasonable effort has been made to ensure the accuracy of the information contained on this site, absolute accuracy cannot be guaranteed. This site, and all information and materials appearing on it, are presented to the user "as is" without warranty of any kind, either express or implied. All vehicles are subject to prior sale. Price does not include applicable tax, title, and license charges. ‡Vehicles shown at different locations are not currently in our inventory (Not in Stock) but can be made available to you at our location within a reasonable date from the time of your request, not to exceed one week.

Although every reasonable effort has been made to ensure the accuracy of the information contained on this site, absolute accuracy cannot be guaranteed. This site, and all information and materials appearing on it, are presented to the user "as is" without warranty of any kind, either express or implied. All vehicles are subject to prior sale. Price does not include applicable tax, title, and license fees. ‡Vehicles shown at different locations are not currently in our inventory (Not in Stock) but can be made available to you at our location within a reasonable date from the time of your request, not to exceed one week.

How Does a Lease Buyout Work?

Consult Jim Hudson Ford for Finance Advice