When you sign up for a lease on a car there is a certain amount of time in which you are expected to keep the car and make the payments. An early termination occurs when you need to turn the car back in for whatever reason: maybe you just don't like it, you can't afford the payments, or you're expecting a baby and need a bigger car. Turning in a leased car early is a break in the contract, and unless you figure out an alternative way to gracefully exit from the lease you may wind up paying thousands of dollars in early termination fees. Some dealerships will allow you to trade in the leased car for a different leased car with little penalties, but this is at the discretion of the dealership. You can also try to find a different buyer who will assume the lease for you; if you have a couple of years left on the lease this is a good option. If money is not necessarily an issue then you can always drop the car off at the dealership, pay the hefty fees associated with an early buyout, and then move on with your life.
An early lease buyout is similar to any other lease buyout, except that it occurs before the end of the lease term. This means that you no longer want to lease the car, but you do want to own it, so you are essentially breaking the contract early in order to own the car instead of leasing it. An early buyout can be a costly proposition; some lease contracts do not even allow for an early buyout but this might be renegotiated if you approach the dealership. You can expect to pay some fees when you do an early lease buyout, but the extent of these fees depend largely upon what was stipulated in your original lease contract. Before heading to the dealership to inquire about an early lease buyout, you should make sure that you pull out your contract and read all the specified terms for the option of an early lease buyout.
Not every lender offers lease end buyout loans, and the lenders who do offer these types of loans generally charge a higher interest rate than they do for regular used car loans. You should spend some time finding the best interest rate when you decide to do a lease buyout, because you do not want to leave yourself at the mercy of the dealership when it comes to financing the new loan. Research interest rates for a lease buyout just like you would for any other car loan. Check with the lenders you already deal with and see what their interest rates are. Use an interest rate comparison website like Bankrate.com to see what interest rates other lenders are offering. Be sure that the rates you are researching are for lease buyouts, and not for regular used car loans. You can apply for a lease buyout loan and be pre-approved before you head to the dealership to negotiate the terms of the buyout. With any luck you can talk the dealer down in price and wind up not using the entire amount of the loan.
A lease buyout can be used to purchase a car which you have leased for the last few years. Lease buyouts are not always the best option, however, so in some cases it is a better idea to explore other methods to purchase a car. If the original contract specifies large fees for any future buyout agreement then it may be best to avoid the buyout altogether. If you are not sure that you will want this particular car a couple of years down the road, you should probably avoid a lease buyout. If you research the vehicle's actual value and find that the lease buyout will cost more than the car is worth, then doing a lease buyout does not make good financial sense. If every lease buyout loan interest rate you qualify for is incredibly high, then you may be better off simply turning the car in and either doing another lease for another car or buying a car with a loan.
An auto lease buyout is a way to purchase a car that you have been leasing. People generally use a lease buyout when the lease is coming to an end and they decide that they would like to keep the car instead of turning it in. A lease buyout is a whole new loan, and you have to apply for it just like you would with any other type of car loan. Using a lease buyout makes sense in certain situations. If the original contract allows for a lease buyout, and you have truly enjoyed driving the car and you're not ready to turn it in, you should consider a lease buyout. You should make sure that amount of the lease buyout does not exceed the value of the car. Check with Kelly Blue Book (KBB.com) or another vehicle pricing website to make sure that you aren't purchasing a leased vehicle which isn't worth the amount you will be paying. If you have happily driven the car for a few years and the car has performed to your liking then it makes sense to buy the car as long as the price is right.
If you find yourself in the situation of wanting to get out of your lease early, but not wanting to pay all the costly fees associated with an early lease termination, you may want to look into finding someone else who is looking to buy out a lease. Plenty of people prefer to assume leases instead of obtaining their own because the payments can be quite reasonable and the initial fees have already been paid. Some lenders prohibit this type of transaction. You will need to make sure that there are no limitations on your lease paperwork before pursuing a third-party lease buyout. You can look into using a company which specializes in advertising potential third-party lease buyout vehicles, but you will wind up paying a fee for this type of service. Many people find the fee is well worth it, however, when compared to the fees they would have paid if they would have terminated their lease early. These services also have access to mass advertising and can match you with a buyer who is willing to assume your lease.