When you lease a car, truck, or SUV you have the option at the end of the lease to purchase the vehicle. The buyout is set at the vehicles residual value which is determined at the beginning of the lease.
Why it’s a good idea to buy your lease.
1. You can avoid paying “end of lease fees” and charges.
2. You don’t have to worry about negotiating with the dealership.
3. You get to stay in the car you know and love.
You should understand the options and contractual obligations you’ll be required to meet.
What Is Residual Value?
Residual value is the vehicle’s expected value at the end of the lease. This value is often agreed upon at the beginning of the lease and written into the contract. Knowing this exact value is helpful in identifying if a lease buyout is a good idea for your situation.
Is It a Good Deal?
First and foremost, compare the car’s residual value (buyout price) to its true market value. The residual value should be similar to the value of the same vehicle in a similar condition. The lease buyout is a good deal if:
1. The buyout price is less than or equal to the market value
2. You can receive a good interest rate on the buyout loan
3. The vehicle’s overall condition, performance, and state of repairs is satisfactory
How to Buyout a Lease
Once you determine that your lease buyout is a good deal, the next step is to apply for financing. At AppCore, one of our specialties is lease buyouts. We handle the process from application to titling. We have rates starting at 3.49% OAC. Apply today or call us at 763-233-0477 for more information on how we can assist you in this process.