Southland News

Consider buying out your lease

May 30, 2023

Loans

Did you know you could buy out your lease early?

A few reasons why you should consider a lease buyout

U.S. consumers forked out an average of $46,437 for a new vehicle in January 2023, marking a year-over-year increase of 4.2%, according to J.D. Power. In the used car market, prices are already starting to drop as the market cools, having seemingly peaked earlier in 2022. CNN Business first reported in June 2021 that due to a computer chip shortage caused by the pandemic, automotive suppliers have had to either close or run at limited production.¹ Here we are two years later; vehicle supply shortages continue and dealerships continue to charge thousands of dollars in “market value adjustment” fees for new vehicle purchases.

Fewer new vehicles on the road mean there are fewer second-hand vehicles to trade in, straining used car inventories. And like new vehicles, used vehicles are sensitive to changes in commodity prices too, as these affect their scrap value. Those who chose to hold off on making large purchases during the pandemic and onset of the chip shortage are still faced with higher prices. However, lessees are finding they may be able to buyout their leases for less. 

According to Marlon Katrell of Lease Buyout Center, “the amount of equity lessees are receiving for their vehicles is unheard of. We have seen as much as $29,000 of equity earned on a lease!”  He shares with us that you don’t have to wait to buy out your lease. Members can start the process now and here are a few reasons to why you should consider a lease buyout early:

  1. There is no certainty on when auto loan rates will stop rising. You can can secure a rate now instead of waiting for potential increases and spending more on interest.
  2. You can put monthly payments towards a purchase now as opposed to making the remaining lease payments and then buying the car at the end of the lease term, which would prolong the time it will take to pay off the vehicle.
  3. You'll be free of any lease contract restrictions e.g., mileage restrictions, modifications, and excess wear and tear.
  4. You can opt to remove a cosigner from the registration when converting to a purchase in the event you now qualify on your own. 
  5. If you're in love with your car and intend to purchase it in the future. 

If you are leasing your vehicle, consider buying out your lease with Lease Buyout Center and Southland Credit Union. You can avoid the costly supply and demand issue new car buyers are experiencing, and you won’t have to worry about your mileage allotment, excess wear and tear or a never-ending lease cycle. Lease Buyout Center and Southland have streamlined the lease buyout process for you. We’ll do all the paperwork online and secure your financing with Southland’s low rates, and you won’t have to visit an office or dealership. The process only takes a couple of days.

To get started, all you have to do is visit our Lease Buyout page and fill out the online form. Be sure to enter “Southland CU'' in the comment box section. Once you enter in your vehicle information and submit, a Lease Buyout Center representative will give you a call. Lease Buyout Center will walk you through the process and you will receive a financing quote from Southland. If you choose to accept, you will send in the required stipulations, including copies of your driver’s license, insurance, a picture of your current odometer and VIN.

Then, you will receive an e-contract to be signed through email, which will include your rate and term for your financing with Southland. The next day, you’ll visit your nearest UPS Store to pick up your DMV documents. Since the DMV requires documents signed in ink, you can simply sign them in the UPS Store and send them back with the included pre-paid return label. Then you’re done!

After receiving all the required signatures and paperwork from you, Lease Buyout Center gets to work. They will quickly pay off your lease and get your car title transferred in about three weeks. It’s that easy with Southland and Lease Buyout Center. Instead of getting caught up in the lengthy and expensive process of buying out a lease at the dealership, continue enjoying your car and save your valuable time and money!

For more information on how to buy out your lease with Southland Credit Union and Lease Buyout Center, visit our Lease Buyout page.

Source: CNN Business