If you are currently leasing a vehicle and would like to “get out” of your contract for one reason or another, you could be wondering if you can take the leased car to a car dealership so that the dealer can “buy out” your lease. The answer to this is yes. In fact, there are a couple of different ways that this can be done.
The first option is simply to take the car to a dealership so that the dealer can purchase the car. The dealer will first make a payment to pay off the lease. Then, if there is any money left over from the purchase of the car, a check will be given to you for the remainder. You can then use this check as you please, whether you want to put it toward a down payment for another car, to buy a used car or for anything else.
This is generally only going to be a good option if you don’t owe more on the lease than the car is worth, which is something that can happen. If you do owe more on the lease than the car is worth, then you will have to put your own money along with the proceeds of selling it to a dealership so that you can pay off the loan. A lot of people like to avoid doing this, but it can be a good option if you would like to get out of a lease.
Another option is to “trade in” your lease so that you can either lease or buy another vehicle. Since the leased vehicle isn’t actually yours, this can complicate things a little bit, but it can be done. Basically, a car dealer can buy the car at its value and then pay off the loan. If any additional money is needed, your new lender will pay off that amount. Then, this amount will be rolled into your new car loan.
The good thing about this is that you don’t actually have to come out of any cash out of pocket, and you can leave with a car loan on a new car that you really like. The bad thing about it, however, is that it can drive your car payments up significantly. This is because car payments can already be more expensive than lease payments, and when you roll in extra costs, this can make your payments that much higher. This is especially a problem if you end up with a loan with a higher interest rate.
If you are interested in continuing to lease but would like to lease another car, you can return your leased car to the dealership. Then, if you can get approved for the loan, you can cover the end-of-lease costs as a part of your next lease loan. You can also opt to pay for these in cash and then simply lease another car with a loan.
As you can see, if you are wondering if a car dealer will and can buy out your lease, the answer is yes. In fact, you actually have multiple options to look into if this is something that you are interested in. Consider heading down to your local dealership so that you can get answers to your questions and so that you can find out more about the best options for your leasing situation.