At the end of a vehicle lease the lessee has the option of returning the vehicle to the lessor or purchasing their leased vehicle. 

Buyer Question:  Should I purchase my leased vehicle at the end of its lease? 

Comment: This is a personnel decision based on how much you like the vehicle, its reliability and how much longer you intent to keep the vehicle.  The buyer should also determine if the lease buyout cost is more than the current fair market value of the vehicle. The current fair market value can be obtained from independent sources Autobytel at www.autobytel.com and Edmunds at www.edmunds.com.

Buyer Question: Where should I obtain my vehicle lease buyout financing? 

Comment: Today customers have several options for financing the lease buyout of their leased vehicle at the end of the lease e.g. 1) local bank, 2) local credit union, and 3) Internet financing sources.

Internet Financing. Financing of vehicles through Internet sites has become very popular. Internet financing is fast (approval within 24 hours), simple (takes less than an hour to apply), easy (loan package to you within 5 days) and you are under no obligation until you use their check at an authorized dealership. Internet financing sites include E-Loan at www.eloan.com.  Buyers with lower credit ratings might want to consider Internet financing sites like Household Auto Finance at www.householdauto.com. 

Bank and Credit Union.   Apply for a loan at several local Banks and Credit Unions.  Determine if their interest rates for the same loan term (length in months), fees and prepayment penalties are equal to or better than the Internet sites.  If a local bank or credit union will match or beat the Internet sites … finance locally.

The following steps take approximately three hours.

1. Use one or both of the calculators listed below to compare the cost of a lease buyout of your current leased vehicle verse buying or leasing another vehicle.
   
   Use the calculator on the Credit Union National Association Internet site at www.cuna.org to compare purchase and lease options. Click on Personal Finance, Online, Credit Union Calculators, View Credit Union Calculators, Auto, Should I Lease or Purchase? 
   
   -or
   
   Use the calculator on the Family Credit Counseling Service Internet site at www.familycredit.com . Click on Calculators.
   
   
2. If the lease buyout option is financially viable apply at the vehicle financing Internet sites.  (1/2 hour each) i.e. E-Loan at www.eloan.com, Household Auto Finance at www.householdauto.com.
3. Apply at your local Bank and Credit Union. (1 hour each)
4. Compare each pre-approved loan’s terms and conditions e.g. interest rate, length of loan, pre-payment penalties, length of approval period, length of the interest rate lock period.
5. Accept the lease buyout financing option which best matches your needs.

Financial Disclaimer

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