Is it possible to refinance a leased car

Once you know what your buyout amount is, you can find a lender who will extend the same amount to you, using the car as a collateral. Then, you simply buyout your lease and continue forward, paying monthly installments to your new lender under the new terms you agreed. All of this refinancing business sounds sketchy and convoluted. Of course, there are some drawbacks to refinancing your leased car. Whether refinancing your leased vehicle is worth it depends on a plethora of factors which vary in every individual case.

You need to do the numbers. Yet, the real selling point is not performance, but technology. Looking up the values on the Edmunds forums , we get a Money Factor of 0.

The buyout price will be the residual value plus the remaining monthly payments. This may actually be difficult to achieve without a great credit score, but entertain the thought. What have we done?! Remember, the whole point is to get out of the vehicle.

This means you have to sell it on the market and pay off the auto loan. However, the goal is complete. You got rid of the car without paying thousands in losses. By doing some independent research, you can develop your own estimate of what you should pay. The leasing company will likely want you to finance the purchase through it to squeeze out some extra profit with a markup. You may be able to get a better interest rate at your own financial institution than with the leasing company or dealership, says Nathan McAlpine, founder and CEO of auto broker CarMate, and there are no fees or penalties if you decide not to go with the leasing company.

In addition to lending money for new and pre-owned cars, some lenders offer car lease buyout loans that work like refinancing loans. As with any auto loan , the key to getting a good deal is shopping around. Check out lease buyout loans from banks, credit unions and online lenders.

This way, the leasing company will have to beat the best deal you found on your own. This is particularly true if you have a solid credit score, Pour says. Making the first move could blow your chances at negotiating favorable terms, according to consumer advocates.

Typically, the leasing company will call about 90 days before the lease is due to expire. In this way, an auto lease buyout is like many other types of transactions. Often, companies have a no-negotiations rule when it comes to the purchase price on a lease buyout, leaving little opportunity for haggling to get a better deal. Experts point to the purchase-option fee as a sticking point that many sellers are willing to take off the table. Now that you know the basics of how to buy your leased car and save money, take some time to reaffirm your commitment.

If you have any lingering doubts, buying your leased car may not be the right move at this point in time. How We Make Money. Barry Bridges. Written by. Former Senior Editor Barry Bridges has been writing about credit cards, personal loans, mortgages and other personal finance products since You have some equity in the car.

If you have only months left, the lease company may call you to potentially negotiate a buyout. Tell them that you have cash in hand but want to negotiate the payoff amount. The good news: you can refinance a lease with bad credit.

It can be done though. According to Credit. Replacing a car lease is an option to consider, although it can be prohibitively expensive. To replace a car lease, you simply return your car, pay the early termination fee and any depreciation and then get a new car lease. The leasing company will then sell your car at wholesale and then reduce the payout by the amount they get from the auction. Most leases do come with an early termination clause, but the penalties can be steep.

The payment can be thousands of dollars. You also have the option to transfer your lease to another party. Transferring your lease is like subletting your apartment. Much like subletting an apartment, each automaker has different rules about lease transfers.

There are also automakers including Volkswagen and Audi, who hold the original lease holder liable if the new lease holder fails to make payments on the car. You may also be held liable for any major damage done to the car by the new lease holder. We recommend consulting your leasing company before you decide to transfer a lease.

Ask them about any outstanding liabilities after the transfer. Leases also may have mileage limitations and requirements for maintenance which can drive up costs. Finally, most leases also have an early termination fee. You might be able to replace your current lease with a new one. Before you sign, however, check if your current lease has an early termination fee.

This may offset any savings found with a new lease. You might consider buying the car. By refinancing the purchase.