Can You Negotiate a Lease Buyout?

Deciding whether buying or leasing is right for you can be a difficult process, but in many cases, you don’t have to make a hard and fast decision right away! Even if leasing makes sense to start, you may be able to buy out your lease before or at the end of your term. If you’ve been thinking about purchasing your lease, you may be searching for the answer to the question, “Can you negotiate a lease buyout?” Most leasing agreements include an estimated buyout price in the contract, but in most cases, it is possible to negotiate an even better deal. 

How to Negotiate a Car Lease Buyout

Here are the steps that drivers near Frankfort and Tinley Park should take before and during their end of lease negotiation:

1. Do your research ahead of time – In most cases, the leasing contract includes an estimate of the vehicle’s value at the end of your leasing contract. If your research reveals that the market price of the vehicle is significantly lower than its estimated value, you’ll have the leverage to negotiate a better deal.
2. Contact your financer in advance – Unless you’ve secured financing through your dealership, your dealer may not be the sole determiner of the lease buyout price. Negotiate directly with the financer–perhaps a local bank or credit union–to see if they’ll accept a lower total cost for the vehicle. Armed with this knowledge, you’re ready to start your end of lease negotiation.
3. Make an offer – Once you’ve done your research and set your finances in order, you’re ready to go to the dealer with a lease buyout offer. If you’ve done your work and can show that the estimate in the contract is inaccurate, dealers like BMW of Orland Park will generally offer you a price closer to that which you’ve requested.

For more information, read up on how to buy a car with BMW of Orland Park.

Choosing the Right Lease Buyout

Now that you’ve seen how to negotiate a car lease buyout, it’s important to consider your timing. While it’s more common for drivers to purchase a vehicle at the end of their leasing term, some contracts allow an early lease buyout before the lease is up. Here are the key differences between the two programs:

• The price of a lease-end buyout is usually set in the contract at the start of your lease. It’s based on the residual value at the end of the leasing term. In select cases, you can begin an end-of-lease negotiation to improve the price.
• An early lease buyout is a good option for drivers hoping to avoid mileage and service penalties. Pricing for this buyout option is determined by the amount you still owe on the lease and the vehicle’s estimated remaining value at the end of the term.

Lease or Buy with BMW of Orland Park

Now that you’ve seen how to negotiate a car lease buyout, we’re sure that you’ll be eager to start your next adventure on the roads near Tinley Park and Homer Glen. Contact us to learn more about your leasing options today, or keep reading to find out what to do after purchasing a car! No matter what you have planned, we can’t wait to hear from you.