Yahoo Autos How a Hyundai Lease Buyout Works
A Hyundai lease buyout allows you to purchase your leased car. You can wait until your lease ends or initiate a buyout in the middle of the lease. Your buyout options are typically listed in your lease agreement, which also includes your buyout price. However, before you decide to buy your leased vehicle, you'll want to make sure the purchase is worth it.
Learn everything you need to know about Hyundai lease buyouts, including how to decide if your vehicle is worth the buyout price, how the process works, and what your negotiation options and fees will be.
Need Financing For Your Hyundai? Compare Car Loans Here
Hyundai Lease Buyout Process
Use the following steps to decide if a Hyundai lease buyout is worth it for you:
1. Collect Important Information
To decide if a Hyundai lease buyout is worth it, you'll need to collect important information, like your vehicle's current market value, the buyout price, and the associated fees. Review your lease contract to learn more about Hyundai's lease-end process, including your vehicle's residual value, the turn-in expectations, and the contract end date if you decide not to buy it out.
You can determine your car's market value by using an online tool, such as Kelley Blue Book. You'll need to provide your vehicle's information, such as its condition, make, model, year, mileage, and features, to get an accurate value in your area.
2. Compare Residual with Market Value
Your vehicle's residual value is the dealer's estimate of its value at the end of the lease. It's part of the total buyout price, which also includes fees, taxes, and any remaining payments due. Your car's market value is what you could expect to pay if you purchased the same vehicle today. If your vehicle is worth more than the buyout price, then a lease buyout is usually a good idea. If your vehicle is worth less than the buyout price, then a lease buyout may not make sense.
It can also be helpful to compare the cost of buying out your lease with the cost of buying another vehicle. If you decide not to buy out your Hyundai lease, you'll likely have to either lease a new car or buy a new or used one.
3. Contact Hyundai
Contact Hyundai Motor Finance (HMF) to learn more about your lease buyout options. You can contact the Hyundai dealer where you leased the vehicle or call to speak with a lease-end adviser. You can also refer to your lease-end kit for contact information. In addition, you'll find an official buyout quote within your HMF account.
4. Obtain Financing and Initiate Transfer
Depending on your financial situation and the buyout price of your Hyundai vehicle, you may need to obtain financing. As soon as Hyundai receives the funds, they'll release the title to the new lender. You can then transfer the title and registration. Once the loan is finalized, you'll make monthly payments to the new lender instead of to Hyundai. You may also be able to use HMF to finance your buyout. Make sure you carefully review all paperwork before signing to ensure the agreed-upon buyout price is listed accurately.
Is a Lease Buyout Worth It?
Whether a Hyundai lease buyout is worth it depends on your vehicle's condition and buyout price. If your current vehicle has excess wear and tear or high mileage, you may incur a lot of extra fees at turn-in. Completing the Hyundai online self-assessment can help you better understand these costs. A Hyundai lease buyout may be worth it if any of the following conditions apply:
You're not ready to give up your vehicle.
You'd rather avoid the hassle of buying or leasing a new vehicle.
If you need lease buyout financing, you qualify for a low interest rate and affordable monthly payment.
Your vehicle is worth significantly more than its residual value.
Your vehicle has a lot of damage, and you will likely incur significant fees.
You exceeded your mileage allowance, subjecting you to expensive per-mile fees.
Of course, you'll also want to consider the extent of necessary repairs. If you buy out your lease, you'll be responsible for all maintenance and repairs.
Can You Negotiate a Hyundai Lease Buyout?
Hyundai usually doesn't allow third-party lease buyouts, which may affect your ability to negotiate. However, this doesn't mean that negotiations are impossible, and discussing your options with a Hyundai lease-end adviser may be worth it. If you intend to negotiate, make sure you give yourself plenty of time to consider the alternative options. Knowing your vehicle's value can also help when negotiating.
While the residual value is fixed, Hyundai may be willing to negotiate other aspects of the buyout price. For example, a purchase option fee of up to a few hundred dollars is common, but you could ask about waiving or reducing it. You could also check about negotiating documentation fees. Additionally, while you may not be able to sell your leased vehicle to a non-Hyundai dealer, you can shop around to find the best financing interest rates for your buyout loan.
Hyundai Buyout Fees and Rates
When you know what to expect with Hyundai lease buyout fees, you can make a more informed decision. Consider the following lease-end buyout fees:
Early lease buyout: The Hyundai dealership may charge a fee if you want to buy out your lease before the end date. It usually includes any remaining payments.
Purchase option cost: Your purchase option cost is a fee for exercising the lease buyout option.
Vehicle cost: Your vehicle cost is how much the Hyundai dealer charges for the vehicle. This is the residual value listed on your lease contract.
License/registration: These are the fees for transferring vehicle ownership from the Hyundai dealer to you.
Taxes: How much you pay in state and local taxes will depend on your location, the vehicle's price, and the amount of taxes already paid. Some states are excluded from sales taxes.
Hyundai's loyalty benefit allows you to waive the disposition fee if you decide to return the car but choose another Hyundai to lease or purchase. Otherwise, disposition fees are payable at the end of a lease if you don't buy out your vehicle. After turning in your lease, you may also be subject to excess mileage and wear-and-tear fees, depending on the condition of your car.
If your vehicle is in good condition, it may be worth a Hyundai lease buyout. Compare your vehicle's value with the buyout price to decide if it's a good purchase. Don't forget to add in any extra fees the dealership may charge.
You Might Also Like
