If you’ve enjoyed the experience with your Hyundai car lease and would want to move on to financing, you’ll need to know how to calculate a lease buyout. This enables you to get a great purchase deal for the car you’re currently driving and save thousands.
Whether you’re looking to claim ownership at the end of the lease period or break your lease early, read on to find out how a Hyundai lease buyout works.
How A Hyundai Lease Buyout Works
On your monthly lease statement, you’ll see the buyout amount listed there. This refers to the residual value of your vehicle at the start of the lease along with the total remaining payments you owe.
The section may also include a car purchase fee, depending on the leasing company. However, if it isn’t listed, you can follow these steps to calculate your car lease buyout:
- Determine the Residual Value of the Vehicle
This information can be found in your lease contract, as it was calculated at the beginning of the lease. The value is the estimated future value of the vehicle by the time the lease contract ends.
- Determine the Actual Value of the Vehicle
Your car may have decreased in value from when the lease began, due to unavoidable depreciation or any wear and tear from driving.
Conversely, if you’ve driven your vehicle less than the average 12,000 miles per year, there’ll be a decrease in value.
- Compare the Residual and Actual Value
If the actual value ends up being higher than the residual value from your lease contract, then purchasing your vehicle might be a good deal. If not, you may be able to negotiate with the dealer on the purchase price.
- Account for License and Registration Fees
If you buy the car that you’ve been leasing, that means that certain costs of ownership are transferred from the leasing company to you. This includes title transfer costs, licensing, and registration fees.
- Account for Sales Tax
There is always a local sales tax rate attached to a car buyout.
Lease-End Buyouts vs. Early Lease Buyouts
When it comes to lease buyouts, you can choose between a lease-end buyout or an early lease buyout. Purchasing your vehicle at the end of your lease may enable you to negotiate a better buyout, or the dealership may be inclined to offer you a great deal if you were considering selling it back to them.
In contrast, those who opt for an early lease buyout will have less room for negotiation when trying to end the lease agreement early. This can be affected by factors like excessive mileage limits or excessive wear and tear. In either case, the dealer can use it to their advantage.
Conclusion
Now that you know how to calculate car lease buyouts, you’ll definitely be saving some thousands. You can find out more helpful guides by speaking with our team at VIP Auto of NJ.
Aside from our Hyundai Financing Buyout options, you can take a look at our other available offers. You can visit our dealership today at 32 US-46, Lodi, NJ 07644 (201) 749-4339 https://vipautonj.com/
