When you enter into a Lexus lease, the leaseholder uses data about your current financial situation to create it. If you experience financial hardship after agreeing to those terms, you may wonder whether they can be renegotiated. They cannot, but your Lexus dealer may be able to offer alternatives that can help you.
Car Lease Basics
Loans and leases originate through the dealership’s captive lender or another financial institution, like your bank or credit union. Your credit rating and financial circumstances dictate the terms of your lease at inception. The lease stipulates a monthly payment, interest rates, duration, mileage, and how long the lease must be in effect before requesting a buyout.
What is a Buyout?
A buyout occurs when you terminate your lease early by purchasing the car you leased. The lease terms will determine how much you pay. By researching your car’s market value, you can determine if the buyout price is fair. If you feel it is not, you may be able to negotiate with the leaseholder to lower the price.
Buying Versus Leasing
Leasing a car possesses distinct benefits and drawbacks from buying one. Leases allow lower monthly payments without a high down payment, for instance. However, you don’t own or build equity in the vehicle and may face significant penalties for excess wear or mileage.
Buying a car allows you to find the exact model you want and customize it to your heart’s content. You can also take advantage of online purchasing programs to complete the process from home.
Receive Expert Advice
The preceding is only an outline of sorts. For specifics on a current or future Lexus lease, we invite you to contact the finance department at Lexus of Valencia.