Can’t Say Goodbye to Your Leased Car? 6 Tips for Car Lease Buyout

We typically break down car owners into two types of people: people who lease their cars and people who buy their cars. People who lease their cars love that new car smell and never want to give up the opportunity to get the latest and greatest car every few years. And people who buy their cars love the freedom that comes with having something all to yourself.

But what happens when a lease person wants to switch teams? Their current car is all they’ve ever wanted and more, so the idea of giving it up is too much to bear. Enter the car lease buyout.

Here are our top 6 tips for buying out your current leased car.

What is a car lease buyout?

Car leases are generally for a period of either 24 or 36 months. At the end of that time period, you have three options:

Trade your car in for a new lease
Return your car
Buy your car

Buying your car from your lease is a little different than when you go to buy a new car. First of all, there is less risk of investment because you already know that you love the car and have knowledge of any issues or problems the car may have. There are no mysterious previous owners that may have mistreated the car.

The buyout loan amount will also be significantly less than when you buy a new car. Because the car has already taken its biggest hits on depreciation, the car will not be as expensive as when you buy a new car. Let’s look at what you should consider when deciding if a lease buyout is right for you.

Is it a good idea to buy your leased car?

There are a lot of reasons that buying a leased car is a great option. If you simply love your car and do not want to get a new car, that might be reason enough for you. But there are other great reasons to buy your leased car.

You put your car through some wear and tear

All lease agreements allow for a small degree of wear and tear. A scratch or ding here and there is generally acceptable and expected to a certain degree. But if your car has a significant degree of wear the leasing company might charge an exorbitant amount in fees upon the return of your lease. Buying the car out instead will help you avoid these fees and put your money to better use.

You are over or under the allotted mileage

Every lease agreement has a mileage cap on it, typically 12,000 to 15,000 miles per year. For every mile over that limit you will be charged. You could easily spend hundreds if not thousands of dollars in overage fees by the end of your lease. But if you buy your car, you can put that money to better use.

If you are under your allotted mileage by a significant amount, your car may be worth more than the dealer is valuing it at. In this case, your car may be worth more than the buyout and you can sell it for a profit.

6 tips for buying your leased car

Make sure you consider the total buyout price

To determine if a buyout is worth it, you will need to consider the total cost of the buyout, not just the residual value that is listed in your contracts. The total buyout price will include the following:

The residual value of your car, as listed in your contract
Any remaining payments (you can buy your leased car at any point in your lease)
Any applicable fees
Sales tax

These additional costs can add significantly to the total buyout. But taxes and fees are pretty unavoidable when buying a car, so don’t let it dissuade you too much. Instead be mindful of the added costs and ensure you have enough money to afford your decision.

Know if it’s worth it

Before you decide to buy your car, try to determine your car’s value. To do this, you will need to know two things: your car’s residual value and your car’s market value.

The residual value is the value of your car at the end of your lease, determined by the leasing company. This number can be found in your contract and is typically non-negotiable. The market value is what your car is actually worth in the real world (what other people will pay for it). You can determine the market value by using a website such as Kelley Blue Book or Edmunds. These websites can determine how much your car is worth based on the make, model, year, and condition of your car.

Comparing these numbers can help you decide if buying your lease makes sense. If the Kelley Blue Book value is much lower than the market value of your car, you may be paying more for your car than it is actually worth. Let’s say the residual value of your car is listed at $15,000 in your contract, but the market value is $12,000. If you bought your lease, you would be paying $3,000 more than your car is worth. If on the other hand the market value is listed within a few hundred dollars of the residual value, it is most likely a fair deal.

Take the time to prepare your finances

If you are looking to secure financing for your loan buyout, be sure to take the time beforehand to ensure your finances are in good order. The rate you are offered for your car loan buyout will depend on your credit score, your debt to income ratio, and the prevailing market rates. While there is nothing you can do about the market rates, you can ensure that your credit score and debt to income ratio are in good standing.

You can prepare your credit score by taking the following steps:

Commit to making full, consistent, and on time payments
Pay down debts, especially those with a high credit utilization ratio
Request a copy of your credit report and ensure there aren’t any errors
Request higher limits on your accounts to increase your credit utilization ratio
Hold off on opening any new accounts
Hold off on anything that might trigger a hard inquiry on your credit

These steps can help ensure that your credit score is as high as possible which will encourage the best car loan rate offers.

Call your leasing company

It’s a good idea to get in touch with your leasing company directly to answer any and all questions you may have. They can tell you exactly how much you will need to buy the car and tell you what fees and taxes you are required to pay.

Additionally they can tell you if they allow third party buyouts. If a friend or loved one is interested in buying your car a third party buyout may provide a good solution for all involved, but not all leasing companies allow them.

Compare lease buyout loans

Unless you have enough cash in your bank account to buy your car outright, you will need to secure financing. And in this case, you want to shop around for terms and rates. Don’t be coerced into getting a loan from the dealership as they almost never have the best terms. Look around at a range of lenders, including traditional banks, online lenders, and credit unions. You want to consider the following when looking for a car buyout loan:

Car loan APR
Repayment period
Customer service ratings
Additional fees

When looking for a loan, using a company that specializes in car loan buyouts can handle the comparison shopping for you. Auto Approve has relationships with lenders across the country and can help you apply for different loans and select the buyout loan that is right for you.

Rethink your insurance

When you lease a car, you are typically required to have pretty hefty insurance coverage. The dealership wants to make sure that their asset is covered even when it’s in your possession. But when you buy your car it’s a different ballgame. You are not required to carry any additional coverage (aside from your state’s minimum requirements). So while you may be taking on more debt with a car buyout loan, you may be saving money on insurance.

Those are our top tips for buying your leased car.

Buying your leased car can be a great option for you for a number of reasons. But it’s important to do your research and find the best car lease buyout loan possible. That’s where Auto Approve comes in.

At Auto Approve, we can find you the best deal possible for your car loan buyout to ensure that you don’t overpay for your car loan. Getting started is easy–just head over to Auto Approve to chat with one of our loan specialists.

Don’t wait–get your free quote today!

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Should You Rent A Car on Vacation? 5 Things to Consider

Do you need to rent a car on vacation?It’s a complicated question, and there’s no one size fits all answer. However, there are a few important details you can and should take into account if you’re on the fence about renting a car on your next holiday.In this short guide to car rentals for vacation, we’ll look at:Your destinationYour travel planYour travel companionsYour vacation habitsAnd your budgetWith these things considered, you should have a clearer picture of whether or not renting a car is right for your getaway. And hey, remember – this is a good problem to have, it means you’re going on vacation!5 Things That Determine Whether You Need A Car On VacationWhether or not you want to drive on holiday is a personal decision. Ultimately, this choice can affect the kind of trip you have, so choose based on the vacation you want. 1. Where You’re GoingYour destination is a huge factor in deciding whether or not you need a car at all. For example, consider the following:Is it somewhere you’ll need to drive to get around? Is it somewhere with robust public transpo and limited parking? Do they drive on the same side of the road? What are your plans for meals – will you need to buy groceries?If you’re going to an all-inclusive resort, or a major city where parking will be expensive and difficult and public transportation is the standard way of getting around, a car might only slow you down. If you’re renting a ranch in Montana or roadtripping through mountains, you’re almost certainly going to want not just a vehicle, but one that can handle inclement weather and rough terrain.And if you’re going somewhere like Ireland or England where they drive on the other side of the road (or if you’re coming to the U.S. or Canada from, for example, the U.K., India, or Japan), even if having your own transportation might be convenient, you might want to look at buses and trains to lower stress and keep you safe.2. How You’re Getting ThereThere are different considerations for taking a road trip vs. flying somewhere.If you’re taking a road trip, you might consider taking your own car rather than getting a rental. This is certainly cheaper, and if you’re driving somewhere close to home, taking your own car is a perfectly good option. The biggest reasons to rent a vehicle for a road trip are:If your car is old or has limitations that’ll make it uncomfortable or more likely to break downIf you know you’ll need to handle terrain or weather your vehicle isn’t well-suited forIf you’re going somewhere far enough from service stations that a breakdown could mean a major trip interruptionIf you’re driving from Boston to Southern Maine, renting a car feels a little silly – you’re close to home, you’re not changing terrain, and you’ll be surrounded by auto shops the whole time. But if you’re driving from Boston to the Grand Canyon, the idea of getting a broken down car back home becomes a much bigger deal. A rental might be more expensive, but if you’re renting with a national company, it may be easier to simply replace a vehicle in the case of an emergency than wait for one to be fixed when you’re several days’ drive from your home and your destination. Of course, that’ll depend on your breakdown coverage and your rental agreement, so read the fine print on everything carefully as you weigh your options.On the flip side, if you’re flying to your destinations – say you’re off to see the rainforests of Costa Rica – renting a car will likely be your only choice, if all the other factors align and you decide a car is, in fact, necessary.3. Who You’re Going WithBig family? Solo travel? Your adventuring party makes a big difference in your transportation needs. If you’re backpacking on a budget alone across Europe, you might be willing to put up with a lot of minor inconveniences to save money. A car might be more of a hindrance than a help – or at least eat up your cash.On the other hand, if you’re taking your parents and your young kids to a beach house, you’re definitely going to need a vehicle.And if you’re traveling with a group of several adults, you might be willing to go either way on a vehicle rental vs, taking transportation. In that case, the best thing to do is dive into the details – will several train tickets be as or more expensive than a vehicle rental? Does the train have a scenic view, or would a car be a better way to see and explore the area?Want a little money back in your pocket for your next getaway?Refinancing your vehicle loan is a great way to save. Most people are eligible for a better rate and to pay less monthly. When you refinance with Auto Approve, we’ll help you find the best deal available to you, then do the paperwork for you!Get a free quote to see how much you could save.4. What You Like To Do On VacationAnother thing to think about is the kind of vacationer you are. Some people like to stay close to home, or stick to eating at restaurants and strolling around urban sites. If that’s you, cabs and walking might be more than sufficient for your needs. But for the outdoorsy, those who love beach days, national parks, and driving into the woods, a car can be a must-have. When you picture yourself on vacation, what are you doing? If you prefer to split the difference, you can always rent a car just for a day or two rather than for the whole time, to save money.5. Your BudgetMaybe one of the most important factors in all of this is what works for your wallet. Compare costs for different options and decide what’s worth it to you. If money is tight, choosing what will cost the least is probably going to be the best plan of action – just make sure you don’t choose something that could have the unintended consequence of costing you more because your research failed you. If the bus is cheaper, but it only comes every other day and you’ll need to rent a hotel room for a night while you wait, is it still cheaper? How much does a cab actually cost? How much is parking and gas where you’re going? Be thorough, especially if cost is a concern.And on the other hand, if you have more wiggle room in your budget, the right transportation for the right destination can make a trip more pleasant and less stressful. So, Should You Rent A Car For Your Next Vacation?That’ll depend on all these factors. A car is not always the right choice for every person and destination. Hopefully, with all of the above in consideration, you’ll be able to figure out the right steps for you and your next trip!Another good next step to take?Finding out how much you could save by refinancing your vehicle with Auto Approve! Most people are paying more than they need to be on their monthly car payment, thanks to dealer markups. If you got your loan through dealership financing, if rates have gone down, or if your credit has gone up, refinancing may be able to save you money both monthly and in the long run with a lower interest rate.Getting a quote only takes a few minutes, no commitment and no hard credit check required.Get your free quote now.

When Should I Refinance A Vehicle?

When should I refinance my vehicle?It’s a common question, and there’s no definitive, one-size-fits-all answer. Instead, it depends on you.The refinancing process can lower your monthly payments and help you get out of debt faster. But should you refinance your vehicle right now? If you're thinking about it, here are some things to consider:Is your auto loan term nearing its end?Are you struggling with high monthly payments?Have interest rates gone down?Has your credit score gone up?Do you want a lower interest rate?If the answer to any of these questions is yes, now may be the best time to refinance your vehicle. Let’s take a closer look.Here’s How You Know When to Refinance Your VehicleConsider these factors to decide when to refinance your car loan.Your Existing LoanWhere and when you got your existing loan – and the details of that loan – are all among the deciding factors in whether you’ll be able to find a better deal. It’s worth noting that, if you got your loan through dealership financing, the odds are very good you could save money by refinancing, as dealerships often add mark ups to their rates.When thinking about whether or not to refinance your car loan, it is important to know the current interest rate and term of your loan. You should consider the amount of time left on your loan and any prepayment penalties.Prepayment penaltiesPrepayment penalties are fees your lender charges you for paying off the loan before it is due. Watch out! Some lenders will not refinance loans that have prepayment penalties attached. That said, even if your current loan has a penalty attached, it may still be worth it for you to refinance. In some cases, you may be able to save more by refinancing than the cost of the penalty. This is especially true if you got a particularly bad rate on your existing loan (which frequently happens when you buy a new car directly from the dealer). Time remainingIf you have several years left on your current auto loan at an unfavorable rate or your existing loan has high fees, refinancing may be the right decision. After all, refinancing your car loan can be a great way to save money on interest and get lower monthly payments.If you refinance your loan to a longer term, you’ll likely be able to lower your monthly payments – but you could end up paying more in interest. On the flip side, if you can refinance at a lower interest rate and at a similar or even shorter loan term, you’ll be able to save money in the long run. (That’s one of the things that makes refinancing so great!)Your Credit ScoreYour credit history is one of the biggest factors in being able to refinance with most lenders. If you have good enough credit, then refinancing your car could save you money.Refinancing can be a great option if you have improved your credit and want lower monthly payments or to get a longer term on your loan. Better credit can also qualify you for a lower rate than you initially received so that you can pay less overall, regardless of whether or not you want a lower monthly payment.The only thing worth noting when it comes to your credit score is that you’ll want to avoid refinancing multiple times, as doing so could hurt your score, and rates usually go up with each refinance. Your Cash FlowMany people are looking for ways to reel in their budgets. If your income has gone down or you want more money in your pocket for added expenses, refinancing your auto loan could make sense for you. Doing so can lower your monthly payments and help save some cash, without having to change or get rid of your vehicle.Refinancing offers tons of potential savings and can be helpful for people who have limited cash flow. For example, if you’re unemployed and need money in your pocket right away, refinancing can lower your monthly payments and even give you the option to take a few months off from making a payment.Before refinancing your car loan, make sure you refinance for the best possible price. Shop around and compare offers before signing any paperwork to make sure you’re saving as much as possible. Unlike the competition, at Auto Approve, we never mark up the rate the bank offers you, so we pass maximum savings on to you. Eligibility For A New LoanHere’s a good question: What makes you eligible to refinance your car? Well, it varies based on the lender, but eligibility can depend on: how old your car ishow many miles you have on ithow much money is left on your loanand other factors If you’re not sure whether you’re eligible to refinance, don’t worry – we can help! Talk to one of our knowledgeable and friendly Auto Approve agents or use our handy online quote form to find out if your vehicle loan qualifies and how much you might be able to save in a jiffy.Interest RatesWith all that out of the way, one of the most important factors you should consider when deciding when you should refinance your car is the broader picture of interest rates.When it comes to interest rates, things have been all over the place in the past several years, with big fluctuations in vehicle prices and rates. Depending on when exactly you financed your vehicle, average rates may be lower or higher now, and your loan-to-value ratio may have shifted..With that in mind, if you’re eligible, it may be a great time to refinance your automobile right now – the only way to know for sure is to check.So, When Should You Refinance a Vehicle?When everything aligns! Many things go into making the decision to refinance your loan, but this article should help you know better what to look for. For many people refinancing can help you save money monthly and pay less over the life of the loan. The good news is, getting a free quote is easy! There’s no commitment or credit check to find out what rates you might be eligible for, and when you decide to refinance, an AutoApprove agent will help make sure you find the best deal for you and then do the paperwork for you, making refinancing quick and easy. So, whether you’re on the fence or ready to dive into refinancing, get your free quote now.

Top 4 Ways to Get a Lower Monthly Car Payment in 2025

How can you get a lower monthly car payment?When money is tight, or you're hoping to make a big purchase, every penny counts. Whether you're trying to save up for something big, looking to put more money where it matters, or cutting back in leaner times, lowering your expenses can help.That means, when you're going through your budget, you may want to figure out where you can save a few dollars. For many people, a car payment is one of the bigger bills they pay each month. If that's the case for you, lowering your car payment could be the answer to your financial challenges.Whether you need a temporary fix or a long term solution, there are tons of great options out there to help you secure a lower monthly car payment.Here are the four best ways to get a lower monthly car payment1. Talk to your lenderLenders are in the business of making money, and they only make money when you make your payments. You may be surprised to learn that many lenders are willing to work with borrowers to help them manage their payments more effectively.They may allow you to skip a payment or lower your payments temporarily. Keep in mind that interest will still accrue during this time, but it is always better to defer and have this accumulate than to have missed payments. Missed payments can trigger late fees and hurt your credit score. You want to avoid the negative credit impacts that will occur without deferment.That said, not all lenders are magnanimous, and they'll rarely want to cut a deal that doesn't benefit them in the end, so while you may be able to skip a payment or lower your monthly cost, you may end up paying more interest in the long run if you go this route.2. Refinance your carRefinancing can lower your monthly car payments in a number of ways and is likely to be your best option to effectively and sustainably reduce your monthly payments. Since refinancing benefits both you and your new lender, it's a win-win – they don't need to make more money than your current lender, so you're more likely to get a deal that'll cost you less overall. Here's how.You can get a lower interest rateOne of the main benefits of refinancing is securing a lower APR. There are several reasons you might be able to get a better interest rate this time around.You didn’t get a good deal on your original loan. If you went in to look for a car and got talked into dealership financing, there's a good chance you got stuck with a higher-than-necessary APR. In this case, refinancing is likely to lower your APR significantly and cut your payments drastically.Interest rates have dropped. Interest rates fluctuate based on how the economy is performing. If you bought your car while rates were high, there’s a good chance you are eligible for a lower APR if you refinance.Your credit score has improved. If your credit has improved since you first bought your car, you are probably eligible for a much lower rate. Your credit score is the most important portion of your application, and an improvement in credit can yield a drastically better interest rate.You can lengthen your repayment periodEven if you are not eligible for a lower interest rate, refinancing can still reduce your monthly payments by changing your repayment schedule. If you lengthen your repayment period (for example, from 36 months to 48 months) your balance will be paid over a longer period of time and your payments will be lower. Keep in mind you will be paying more interest overall, as you will pay interest for 48 months instead of 36 months, but it will drastically reduce your monthly payments.You can add a co-borrowerWhen you refinance, you can add a co-signer to your loan and possibly reduce your interest rate and secure better terms. If your co-borrower has good credit, they will be eligible for a better interest rate. If refinancing sounds like a good option for you, Auto Approve can streamline this process and help you start saving money today. We work as your advocates to get you the best rates possible, then do the paperwork for you..Want to know more about Auto Approve? Click here to find out why Auto Approve is the best way to refinance your auto loan.3. Sell Your CarIf you need a more permanent solution than talking with your lender will provide, and refinancing isn’t an option, you might need to consider a new set of wheels. You can either trade in your car to a dealership or sell the car on your own.Almost all dealerships will accept trade-ins and can put you in a car that will have lower monthly payments. Make sure you talk to the dealership and are upfront about what you can and cannot afford. You can also choose to sell the car privately. This is a bit more work than going to a dealership, but you will probably get more money for your car. If you want to sell your car on your own, be sure to clean your car very well, get good pictures, and make sure maintenance records are up to date. You want to make your car as attractive as possible to increase the amount of money you can make.Whether you sell to a dealership or to a private buyer, be sure to know three things before starting this process:How much you owe. Know how much money is left on your loan balance, and how much you need to sell the car for in order to break even.How much your car is worth. Go to Kelley Blue Book or Edmunds to look up the value of your car. It might be worth more than you think and you don’t want to lose out on money that could be yours.What you’ll do for transportation next. If you plan to replace your current vehicle with a less expensive one, make sure you take time to look at the market and find vehicle options that’ll fit your needs before giving up your car. Vehicle prices have fluctuated drastically over the past 5-10 years and are likely to shift again with changing car tariffs. If you won’t be replacing your vehicle, have a backup plan for how you’ll get around and test it out for a week before making the change.4. Lease a Car InsteadIf you have sold your car but still need to get around, getting a lease instead of purchasing a new car might be a good option. Leases are generally cheaper than buying a new car, as you are only paying for the depreciation that accrues during your use. There are three main leases you can pursue:New Car Lease – This is the most common type of lease and is widely available. You typically need pretty good credit and a down payment to secure a new car lease.Used Car Lease – These are not as common as new leases but they are out there if you do your research. The APR might be a bit higher, but since the car is not worth as much you might have lower payments than if you got a new car lease.Lease Takeover – This occurs when someone wants to get out of their existing lease for one reason or another. Websites like LeaseTrader.com and SwapALease.com provide a space for you to shop around for a lease takeover. Some people who are desperate to get out of their existing leases may even offer cash incentives, making this a good option if money is particularly tight. You will still need to go through an application and credit check, but you can probably secure a nicer car for a lower rate than if you were to get a new car lease.And those are our top tips for lowering your monthly car payment!In times of economic uncertainty, budgeting and saving money is incredibly important. If you are struggling to make ends meet every month, consider one of the options above.And if refinancing seems like the right option for you, or you want to find out just how much refinancing could lower your monthly payment, Auto Approve is here for you. All it takes is a few clicks and to get a quote and get on your way to more money in your pocket and less on your vehicle payments.GET A QUOTE IN 60 SECONDS

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