BMW Lease Buyout

While there are several different ways to buyout a lease, all car lease buyout definitions can be summarized as follows: you’ll pay off whatever remains of your lease, take out a new loan to cover the rest of the vehicle’s cost, and work to pursue full ownership over time! Now that you’ve got the basics down, how does a lease buyout work? Explore the ins and outs of lease-end buyouts and early lease buyouts with our Business Management Team .

A lease buyout sometimes referred to as a purchase option, allows you to purchase the car at the end of the lease instead of turning it in if your lease contract permits it. Whether or not buying out a leased car is the right move depends on a lot of factors.  Our finance experts are here to answer your questions at Competition BMW.

LEASE-END BUYOUT

A lease-end buyout is the most common option. This requires you to pay the purchase option price at the end of the lease period plus a purchase option fee dictated by the lender. This option is a good choice for you if:

  • You’re happy with the vehicle
  • You won’t have to spend time shopping around for a new car.
  • If there is excess wear and tear, you may not be charged for it. 
  • There’s no other vehicle, at a similar price point, that you’d like better
  • You may not be charged for any mileage you went over.
  • You get to keep a car you love

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 option, so be sure to check beforehand if this is something you’re interested in for your Stonybrook 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 Competition BMW

We’re happy to answer any and all of the financing and insurance questions on your mind. Get in touch with our financing team today to learn more about the lease buyout definition, or explore some of our car-buying tips that respond to common questions. Just make sure to check out our Smithtown lease and finance offers, too!