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Financing a Lease Buyout in Canada: Exactly How It Works

Financing a Lease Buyout in Canada: Exactly How It Works

Coming to the end of a car lease and don’t want to give up your car? Like the car so much that you want to keep it? You’re not alone. Lots of customers come to us wanting to finance a car loan for a lease buyout. Is this a possibility though?


Yes it is!


Some lenders call these lease buyout loans while others cover them in standard auto loans. Either way, you can finance a lease buyout when you deal with us.


But should you?


Financing A Car Loan For a Lease Buyout


Buying your lease car can be a good idea in some circumstances. If you love the car or it fits you perfectly, there should be no reason not to buy it.


A lease buyout can work if the leasing company is offering less than market value. Or the leasing company is giving you a good price for the car that is less than market value, buying it could be a good idea.


Check the lease paperwork for the end of lease value or check their offer at the end of the lease. Compare that offer to the market value using internet tools and compare the two. Check the retail value and it if it’s higher than what the leasing company wants, it might be a good deal.

You’re facing high end of lease fees


If you went way over the mileage limit or the car has damage, buying it may be a good idea. Wear and tear should be taken into account during a lease but extra damage may not.


The leasing company should offer a pre-inspection check to let you know what fees you’re in for. You then have the option to take the hit on fees, have the car repaired at your own expense or buy the car.


You should know if you have gone over the mileage limit and how much it’s likely to cost. Do the math and see how much you’re going to be paying.


You love the car


Sometimes a lease buyout doesn’t have to make financial sense, but is more about emotional sense. If you’re attached to the car, you have fond memories and just cannot be parted, keeping it may be the best thing.


Do pay attention to the numbers though. While following your heart is fine if you can afford it, if you put yourself into difficulty, your thoughts on the car will soon change!


Using an auto loan for a lease buyout is definitely possible but whether it’s a good idea or not is down to you to decide. You can expect the same kinds of interest rates and conditions as a standard loan and as long as you qualify, there is no need to say goodbye to your car just because the lease is up.


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