Yahoo Autos How a Lexus Lease Buyout Works
A Lexus perfectly balances provocative styling, class-leading safety, and superior technology. It's not unusual for drivers who lease one to form an emotional bond with their ride.
At the end of your lease term, you can choose to return the lease, snag a new Lexus lease, or even opt for a Lexus lease buyout. If you're in love with your Lexus and want to keep it, a Lexus lease buyout can be a simple process. But before going ahead, it's vital to explore your options, crunch the numbers, and conduct thorough research to make a well-informed choice. Buying a vehicle is a significant decision, so you shouldn't just go with your gut feeling.
Understanding how a Lexus lease buyout works can help you make the right choice when deciding if it's right for you. This guide explains the Lexus lease buyout process, discusses when it may benefit you financially, explores the fees and rates involved, and provides tips on negotiating your buyout with a Lexus dealership to help you navigate the process with confidence.
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What Is a Lease Buyout?
When you take out a car loan, the ownership of the vehicle transfers to you from Lexus Financial Services once you've paid the loan in full. Meanwhile, leasing a car is like renting it from the dealership for a fixed period. You can use the vehicle during the rental period, but you won't own the car.
To own the vehicle, you need to pay the remaining value of your Lexus at the end of the lease period. The remaining value is also called the residual value. This purchase is a lease buyout, and the residual value is the buyout purchase price.
Lexus Lease Buyout Process
If you have a car lease contract with Lexus Financial Services, you can purchase your vehicle before the lease expires or at the end of the contract. If you're nearing the end of your lease period and considering buying your Lexus, follow these simple steps:
1. Establish Your Vehicle's Residual Value
The residual value or buyout purchase price is the estimated value of your car when your lease ends. Lexus Financial Services predetermines this value when you sign your contract at the beginning of the lease term.
To determine your residual value, check your lease contract or navigate to the Lexus Financial Services site and sign in to your account to request a payoff quote. You can also contact Lexus Financial Services at 800-286-0653.
Calculate your costs at least three months before your lease ends so you can plan financially.
2. Schedule an Appointment with Your Lease Originator
Think about scheduling an appointment with your originating dealership about two months before the contract termination to negotiate your Lexus purchase.
If you have any questions about your lease buyout residual value or end-of-lease fees and options, your Lexus dealership can answer them. Some states may require you to purchase your leased vehicle through your original dealer. You can call the team at Lexus Financial Services at 800-874-7050 to confirm if this applies to you.
3. Arrange Vehicle Financing
If you're ready to purchase your Lexus, you can pay in cash or apply for a lease buyout loan. These loans can help provide the funds but may attract higher interest rates than loans for new car purchases.
Not all banks offer lease buyout loans, so it's important to check with your bank first and shop around to find the best option. Lexus dealerships also extend approved credit to qualified applicants, but you're not obliged to accept the offer. Before you decide, compare all your financial options to make the best choice for your wallet.
4. Finalize Financial and Lease Obligations
The last step is to settle the purchase price, sales tax, remaining lease payments, and other lease buyout costs. It's crucial to fulfill all financial obligations before the lease end to avoid late fee charges.
