What is a Lease Buyout?

If your current lease term is coming to an end, you may be wondering about your next step. Lessees who are ready for a new vehicle can return their current one to the dealer once the lease term has ended, but what if you want to purchase the vehicle? Can you buy the car you leased? The short answer is yes, in most cases, you can, typically through a lease buyout. And what is a lease buyout? Pfaff Leasing answers this question below to ensure you continue to enjoy your vehicle on the roads of Toronto, Calgary, and beyond.

Can You Buy the Car You Leased?

As mentioned above, yes, you can buy the car you leased, and you have a couple of different options for doing so. Let's take a look at each one in detail.

Lease-end Buyout

With a lease-end buyout, you pay the vehicle's expected value at the end of the lease term. In most situations, you and the dealer negotiate and agree on this price before you sign your lease agreement. A lease-end buyout is a good choice if any of the following apply: 

• The vehicle needed minimal repairs.
• You can't find a vehicle of similar price and quality to purchase or lease. 
• You love your leased vehicle and want to make it a permanent addition to your Woodbridge-area driveway.
• You obtain an attractive interest rate to finance the cost of the buyout.

Early Lease Buyout

What is a lease buyout option for those who want to buy before the lease term ends? That would be an early lease buyout, which your contract may or may not allow, depending on the fine print. If an early buyout is permitted, the price is usually determined by the lease-end residual value on the original lease, as well as by the amount you still owe on the lease. If the vehicle has depreciated significantly and is now substantially below market value, you may be asked to cover the cost difference. Of the two types of lease buyouts, this is the less common option.

Contact Us for More Information About Lease Buyouts

Now that you have a better understanding of what a lease buyout is, browse our latest inventory or continue your research on our website. Whether you're interested in a luxury or exotic car or a commercial vehicle for your fleet, we have the selection you need. Contact us in Woodbridge for more information or to discuss your leasing needs with one of our automotive professionals.