What Is a Honda Financial Lease Buyout?

2022 Honda CR-V on the road

When it’s coming to the end of your car lease, there are two paths you can take. Either, you can return the vehicle to the dealership and settle any remaining fees, or you can negotiate a Honda lease buyout. What is a lease buyout? The lease buyout definition is when a dealership sells you a vehicle at or before the end of a lease contract for the price of its remaining value. Within the area of a lease buyout, Cincinnati drivers again have two options. Take a look at the different types of Honda financial lease buyouts to see which works best for you, then make your way to Joe Morgan Honda near Middletown.

Honda Lease Buyout: Lease-End Buyout

This is the most common option. A lease-end buyout simply means you pay what the vehicle is expected to be worth by the end of the lease period. Typically, this price point is agreed upon before you sign the lease agreement. It’s a great option for Lebanon drivers that are:

  • Happy with the vehicle
  • Have had little to no repairs since leasing the car
  • No other vehicles, at a similar price point, that you’d like better
  • Able to get a good interest rate to finance the buyout price

This is also of interest to many drivers because they know the condition and history of the vehicle they have been leasing, unlike when purchasing a different used car.

Honda Lease Buyout: Early Lease Buyout

The second option is to purchase the vehicle before the end of the lease contract. You’ll have to check your lease contract beforehand because this is not always allowed. You’ll also want to be sure it’s worth the long-term investment to buy instead of lease. Be sure to keep in mind the history of the vehicle. Near the end of the lease, the price is determined by:

  • The lease-end residual value on your original contract
  • The amount you still owe on the lease
  • If the vehicle has depreciated quicker and is below market value, you might have to pay the difference

Buyers sometimes consider this buyout if they are concerned about lease penalties like going over mileage, not maintaining scheduled services, or damages to the interior or exterior of the vehicle.

Lease Buyout Definition: How Does it Work?

If you ultimately want to own your vehicle, and you believe a car lease buyout to be a good option for your budget and finances, what are your next steps? Here is what you can do to perform a Honda lease buyout:

  • Chat with your leasing institution. When you’re nearing the end of your lease, talk to the institution you’re leasing with to inquire about your options. They can provide you with information about how a car lease buyout works with them, including whether there are any fees associated with facilitating a buyout.
  • If you’ll be financing the buyout, apply for pre-approval. Some Middletown drivers choose to pay for their car lease buyout in full if they’ve been saving for it, be sure to chat with our finance team about loans specific to lease buyouts. If you plan to finance your lease buyout, now is a good time to apply for pre-approval with a few lenders to see how you qualify.
  • Negotiate and finalize the buyout. There may be some flexibility for you to negotiate your car lease buyout down to a lower price (if you hadn’t done so for your lease). After determining a price you feel comfortable with, and securing your financing, all you need to do is finalize the buyout!

What is A Lease Buyout? Learn More at Joe Morgan Honda

After learning about the lease buyout definition, take the time to explore the options that work best for your Mason life. You can assess the two car lease buyout options, explore your car loan, the wear and tear, and the purchase price to see if this investment is worth it for you. If you have any questions, feel free to reach out to us today!

 

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