Auto lease buyout loan options

Buying out a lease means you're buying your car from your leasing company, so you'll need to have the cash ready. If you don't have the funds, that's where your bank or another finance company, like Huntington, comes in. We can help provide financing to buy out your lease and walk you through the process.

Review your lease agreement to understand your lease buyout options and purchase option price. As your lease comes to an end, your leasing company may send you a packet with your lease-end options. If you don't receive this information, you can always reach out to your leasing company to learn more.

If you decide to buy out your lease, then you can move forward with an application at a bank or another finance company.

The residual value is the estimated value of your vehicle at the end of its lease. This amount should be outlined in your lease agreement. 

Many people choose to buy out their leases as they end, but some leasing companies may allow you to buy your lease out earlier if you'd like. Keep in mind, you could be subject to an early termination fee. Always refer to your lease agreement or talk to your leasing company to understand if that's a possibility.

Exact fees vary by leasing company, so be sure to check with your leasing company or leasing agreement to understand what’s expected of you. Each loan buyout is different, but we’ve listed a few payment examples you may come across:

• Purchase option price: Also known as the residual value of your car outlined in your lease agreement.
• Administrative fees: It depends on your specific lease agreement, but you might have to pay a processing fee and purchase option fee.
• Early termination fee: If you choose to buy out your lease before it is scheduled to end, you may have to pay a fee.

The decision to buy out your lease is unique to your financial circumstances. As you weigh the pros and cons, here are a few things to consider:

• Your car's mileage: When leasing a car, your contract usually requires you to stay under a certain number of miles. If you far exceed that limit, the leasing company will likely charge you—typically $0.25 per mile—for each mile you went over. Depending on how many miles you went over, you may be better off buying out your vehicle to avoid extra mileage fees. That said, also consider the maintenance fees that come with a high-mileage vehicle. If you stayed under your mileage limit, that could be another reason to consider buying out your lease, because the value of your car may be worth more than the projected residual value.

• You've sustained damage or excess wear and tear to your vehicle: If your car has some dings and scratches, you’ll likely have to pay a fee to repair that damage when the lease ends. One way to avoid this fee is to buy out your lease. Then, you can make repairs on your own as time and your budget allow. Just make sure you’re okay with having a few of those scratches on your car and paying for the repairs on your own.

• How much you love your car: If your car is in good condition and it would be hard for you to part with it, it might be worth it to buy out your lease.