A car lease buyout is when you purchase the vehicle you’ve been leasing. When a car lease is up, you typically can’t sign for more time — you can either turn in the vehicle, trade it in for another car or buy it. If you’d like to do a lease buyout, you could pay cash or get a lease buyout loan.
A lease buyout loan can be easy to get — you don’t have to have the vehicle inspected.
If you refinance your car lease, you’re essentially doing a lease buyout. Doing so may help you lower your payments or get a lower APR. If you don’t love the car, though, there are other options to get out of a car lease early.
Car leases work when you agree to pay a set amount to use a vehicle over a set term, usually three years. You could pay the entire lease amount upfront, in what’s called a single-pay lease, or you could get a loan and make monthly lease payments. Here’s more detail on how car leasing works.
Lease buyout loan rates tend to be similar with regular auto refinance rates and can go as low as 1.99% as of September 2021.