What’s a Lease Buyout Car Loan?

by Rate Genius

When leasing a car, truck, or SUV – dealers give the option to “buy out” the vehicle at the end of the lease contract. This lease buyout is set at the vehicle’s residual value.

Why is it a good idea to buyout a lease?

  1. You can avoid paying annoying “end of lease” fees and charges.
  2. You may evade stressful negotiations with the dealership.
  3. You get to stay in the car you know and love.

Understand the options and contractual requirements you’ll be required to meet to decide whether a lease buyout is a good fit.

Ready to buyout your current lease? Get Started

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:

  • The buyout price is less than or equal to the market value
  • You can receive a good interest rate on the buyout loan
  • 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 RateGenius, one of our specialties is lease buyouts. We handle the process from application to titling.

About The Author


Rate Genius


Read More

by Rate Genius

Auto Refinance Rate Trends

Each month, RateGenius asks auto refinance lenders and industry experts to see where they believe interest rates are headed. This month (September 2019), 20 percent of experts asked believe auto refinance rates will rise over the next month or so; 60 percent think rates will fall; and 20 percent believe rates will remain relatively unchanged…

by Julia Guardione

It’s true: multiple credit inquiries can count as one

Credit inquiries can dock your score by multiple points, but they’re a necessary evil if you’re trying to open a new line of credit. Luckily, there are times where multiple inquiries will combine to count as only one. Any time you apply for a new credit-based product, such as an auto loan, credit card, or…

by Rate Genius

What’s a Lease Buyout Car Loan?

When leasing a car, truck, or SUV - dealers give the option to "buy out" the vehicle at the end of the lease contract. This lease buyout is set at the vehicle’s residual value. Why is it a good idea to buyout a lease? You can avoid paying annoying "end of lease" fees and charges.…

review review

Customer Reviews

Read our 10925 Certified Reviews

4.9

READ OUR REVIEWS
apply now apply now

Apply Now

Lower your interest rate and drop monthly payments by an average of $76*/month!


GET STARTED