How to Capitalize a Vehicle Lease Buyout

If you are looking to buy out your automobile lease, you might need a new loan. A vehicle lease buyout is a predetermined buyout price agreed upon at the signing of the lease that allows the lessee to buy the car for that price at the end of the agreement. An individual can capitalize, or pay for, the new loan in a number of ways.

Instructions

1. Pay for the vehicle by cash or check in full on the lease termination date. While not every individual will have the funds to go this route, this is the easiest way to capitalize the vehicle lease buyout.

2. Seek lending institutions that grant loans for vehicle lease buyouts. Not every financial institution extends loans for vehicle lease buyouts, but some national and local banks should be willing to lend you the money if you have good credit.

3. Shop around to find the best interest rate possible. Vehicles financed through lease buyouts tend to have higher interest rates than other used cars, so do thorough research to ensure you are receiving the best deal. The dealership from which you bought the car will offer you financing, but its rates might be significantly higher than a private lender. Research your options, and consider the length of the loan. Longer loans will have lower monthly payments, but you will be paying more in interest in the long run.

References

• "Lease Your Car for Less: The Consumer's Guide to Vehicle Leasing"; Richard Kaye; 2008