Read this tip to make your life smarter, better, faster and wiser. LifeTips is the place to go when you need to know about Lease Buyouts and other Auto Loans topics.
If you are currently leasing a car, the concept of a lease buyout should have been explained to you when you first leased the car. There are probably specific lease buyout terms specified within your paperwork, but in general a lease buyout is a loan taken out to purchase the car you have been leasing. Unless your lease paperwork forbids a lease buyout, you can obtain a lease buyout loan to buy the car instead of turning it in. Not all lenders provide lease buyout loans, but those who do generally charge a higher interest rate for lease buyouts than for regular used car loans. This means that if you are thinking of obtaining a loan for a lease buyout, you will have to ask the lender what the specific interest rate for the loan will be instead of just assuming the used car loan rate applies to you. You will also want to make sure that you begin the process of the lease buyout before your lease actually runs out. This way you have plenty of time to deal with the financing and title transfer before the lease expires.
|Jennifer Mathes, Ph.D.|