Buy a car at the end of your lease

Buy a car at the end of your lease

You’ve come to the end of your lease and you like you car enough you want 

to keep it in the driveway. Just like buying a used car, there is some 

research to be done to nail a good deal. 

First, you need to know the cost of buying out your lease. Read the fine 

print of your contract and look for the “purchase option price”. This 

price is set by the leasing company and usually comprises the residual 

value of the car at the end of the lease plus a purchase-option fee 

ranging from $300 to $500. When you signed on the dotted line, your 

monthly payments were calculated as the difference between the vehicle’s 

sticker price and its estimated value at the end of the lease, plus a 

monthly financing fee. This estimated price of the car value at the end 

of the lease is what is termed in leasing jargon “residual value”. It is 

the expected depreciation – or loss in value – of the vehicle over the 

scheduled-lease period.  For example, a car with a sticker price of 

$40,000 and a 50% residual percentage will have an estimated $20,000 

value at lease end. 

Now that you know the cost of buying out your lease, you need to determine 

the actual value, also termed “market value”, of your vehicle.  So, how 

much does your car retail for in the market? To pin down a good, solid 

estimate you need to do some pricing research. Check the price of the 

vehicle, with similar mileage and condition, with different dealers. Use 

online pricing websites, such as Cars.com, Edmunds.com and Kelly Blue Book 

for detailed pricing information. Gleaning pricing information from various 

sources should give you a fair estimate of your vehicle’s retail value.

All you have to do now is compare the two amounts. If the residual value is 

lower than the actual retail value, than you’re into a winner. 

Unfortunately, there is a good chance a car coming off a lease is a little 

on the high side.

Don’t despair though. Leasing companies know as much that residual values 

on their vehicles are greater than their market value and as such are 

always on the look out for offers. You can knock down on the price of your 

leased vehicle with some smooth negotiating tactics. Put forward a price 

that is below your actual target and negotiate hard until you wind up near

that figure. 

Buy a car at the end of your lease

بقلم محمد عمايرة

محمد عمايرة 14 سنه ، مدون أردني مهووس بالتقنيه والتكنولوجيا الحديثه ويهتم بكل ما هو جديد في عالم التقنية والانترنت

شارك الموضوع مع اصدقائك؟

اذا كان لديك اي استفسار عزيزي الزائر بامكانك وضعه في تعليق!