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October 30, 2009, Newsletter Issue #109: Lease Buyout
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Tip of the Week
A lease buyout is a little different from other auto financing. At the end of a lease, some people decide to pick out a different car and begin a new lease or buy their current leased vehicle with a lease buyout loan.
With a lease buyout, you purchase the car you have been leasing and make it your own. The interest rate for a lease buyout is generally higher than the interest rate for other types of auto loans, but if your lease term is coming to an end and you have your heart set on purchasing the vehicle, then it is worth it.
There are different rules and regulations associated with a lease buyout, and there are additional fees as well. You are required to pay all the taxes and registration fees out of your own pocket because these fees cannot be rolled into a lease buyout loan.
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