Negative Equity at Lease End
Negative Equity at Lease End: Should You Still Buy the Car?
What if your car is worth less than the buyout price? An honest look at when buying still makes sense.
Key takeaways
- Negative equity means paying more than market value to buy.
- It can still make sense if you'll keep the car for years.
- If you'd sell soon, returning is often cleaner.
Full transcript
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This is the Lease End Minute. I'm Joe from Champion Auto Finance.
What if your car is worth less than your buyout price? That's negative equity, and it's more common than people think.
Here's the honest answer. If the car is worth less than the payoff, buying it means paying more than it's worth on the open market. That can still make sense if you love the car, know its history, and plan to keep it for years.
But if you were going to sell it or trade it soon, returning it at lease end is often the cleaner exit. Just watch for turn-in charges, and run the numbers both ways.
Champion Auto Finance is not a lender. Approvals and terms are subject to lender underwriting.
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Champion Auto Finance
Thinking about buying out your lease? Learn more and get started at championautofinance.com.
Champion Auto Finance is a NJ DOBI-licensed financing partner, not a lender, coordinating lease buyout financing for drivers nationwide. Approvals and terms are subject to lender underwriting. Nothing on this site or in these episodes is legal, tax or financial advice.
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