Leasing is ideal for those who like to have a new car every couple of years. Many people lease vehicles for this and other reasons, such as if they don’t drive a lot. When the lease is up, people typically have two options. They can return the car to the dealer and start another lease or buy a vehicle, or they can buy out the lease, essentially turning a lease into ownership.
This is also known as a lease buyout, and it’s a great way to keep the vehicle you love if you’re not ready to trade. You will have to first confirm that you have the option to do this. If your dealership doesn’t offer it specifically, you can find a private lender that will help you refinance the loan into a traditional purchase loan instead of a lease.
The car’s value is factored in here—the value of the vehicle compared to what you’ve already paid toward the lease will determine how much is left to put in the new loan. You’ll also have to pay sales tax on the transaction, so keep that in mind.
The biggest thing to know about turning your lease into ownership is that you aren’t limited to what the dealership offers. Too often, people assume that since it’s a lease, they can only work with the dealership when it comes to financing. You can choose a private financing company of your choice if you find that they can get you better rates or payment terms.
Check Online Rates
One of the best ways to go is to research different online solutions to help you turn your lease into ownership with a vehicle refinance loan. You can do some research to see what the going rates are online and which lenders or financing companies are waiting to help people get out of their leases without having to settle for the dealership’s limited payment options and loan arrangements.
Once you’ve done your homework, you’ll be prepared to turn your lease into a traditional loan and know what to expect in the process. That means that you will be more likely to get the best deal so that you can keep the vehicle that you love. With the online financing options available today, it’s easy for anyone who’s fallen in love with their lease to keep it for good.