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.
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.