Overhaulin'

Can I buy out of a car lease 3 years early?

I have leased my car for a 4 year period a year ago through a company that deals with car leases. (I picked up the car at a used car lot. The car was 6 months old at the time). Now my bank has offered me a car loan at a very good interest rate. Can I go to my leasing company and tell them I want to buy the car and then I can own the car and make bank payments instead of lease payments or am I locked in with the leasing company? Thanks

Public Comments

1. Call and find out what your lease buyout is--you can always refinance that amount if you want.
2. The leasing company will be happy to do this for you, but don't look for any bargains. They are in the business to make money and you are asking them to release you from the contract. They will do this but they won'tgive up their profit.
3. You legally must be able to buy out of a car lease. However the leasing company may want to reclaim some of the profit they were due to make over your 4 year lease period. Your first step is to contact the leasing company and ask for a settlement figure to pay off your lease. From this figure you will be able to work out if it is worth cashing in the lease and taking out a bank loan.
4. If they know you are going to go elsewhere, they may try to match the rate your bank is offering. They want your buisness and work for YOU! There is usually a fee to buy out early so make sure the end result and saving is worth it. Also get it in writing from your bank first before you buy out from the leasing company!