Am I Allowed to Switch from a Lease to a Car Loan?
Did you recently visit our GMC finance center and sign a GMC lease for a vehicle like the GMC Yukon or an electric SUV like the GMC HUMMER EV? If that’s the case and you’re now in love with your leased automobile, you might be wondering if there’s a way for you to keep it instead of returning the car to our GMC dealership when your contract ends.
There is a way for you to hold onto your leased vehicle, and it’s a lease buyout.
Leased Buyouts Explained
Our team of GMC dealers is standing by to tell you everything you want to know about lease buyouts. Put simply, a lease buyout is an arrangement in which a lessee purchases their leased car either by paying for it upfront or financing their ride.
When you lease one of the new GMC models on our lot, you’ll sign a contract that will include what’s called your car’s residual value. Also referred to as the purchase option price and the buyout amount, the residual value is what a dealer expects your leased vehicle to be worth at the end of your contract. The residual value is the minimum you’ll typically have to pay to purchase your leased automobile.
Things to Think About
Before you apply for GMC financing to buy your leased car, you should give some thought to a few factors. For starters, you should think about the value of your leased vehicle in its current condition as well as its mechanical history. In addition, you should devote some thought to any penalties you may have to pay at the end of your lease due to excessive mileage or wear and tear.
If the market value and residual value of your leased automobile are $20,000, you’ve kept up with your car’s routine maintenance, and you’ll be on the hook for $4,000 in penalties, it’s a wise move to purchase the vehicle. Is the market value of your vehicle significantly less than its residual value but you won’t owe any penalties? In that case, it may make sense to buy or lease another vehicle to avoid overpaying for your car.
Do you need help determining whether a lease buyout is the right move for you? Contact or visit LaFontaine Buick GMC Highland now.