Flatiron Finance wants to spend this blog giving you an explanation about how a lease buyout works. We know there is a lot of jargon that can be confusing, but we want you to know it isn’t as complicated as it seems. Not to mention, the benefits far outweigh the challenge it may take to understand.

How does a lease buyout loan work?

A “lease buyout loan” gives you the money you need to buy your currently leased car. This loan takes place either at the end of your lease or before the end of your lease, as an alternative to returning it as originally planned. The benefit of taking out a lease buyout loan is that it helps you to avoid penalty fees for wear and tear, exceeding miles and also means that you have a vehicle you are already familiar with in the process.

But—like any other purchase—there are questions you should consider the answers to before you go ahead and make your purchase.

Things to think about when financing a lease buyout:

  • How much has the value of your vehicle depreciated?
  • What is the car’s market value?
  • How much are your “end of lease” fees?
  • Are there any purchasing fees?

What Flatiron Finance can do for you:

When you leased your vehicle, the contract included a number of options for termination at the end of your lease. Normally these include the ability to turn the vehicle in and walk away, buy it to trade it, or buy it and keep it.

Many consumers are not aware that there is often more than one payoff quote available, and that the equity and sales tax consequences of making the right choice can be significant. Thoroughly understanding the financial implications of each is important to making an informed decision.

Our lease termination specialists, based out of our Colorado offices, will be happy to help with your Colorado auto lease buyout. If buying and financing is the right choice for you, we can handle all of the same tax, title, and finance arrangements as the dealer, often at substantial savings.

Call Flatiron Finance today to learn more about getting a Lease Buyout Finance Loan, and any other options we would be happy to talk to you about.