Yes, you can almost always buy the car at the end of your lease. The process, known as a lease buyout, is a standard provision in most lease contracts. Your first step should be to review your lease agreement to find the purchase option price, which is typically the car's residual value (its predicted worth at lease-end) plus a purchase option fee.
The decision to buy hinges on a simple comparison: Is the residual value less than the car's current market value? If so, you have positive equity and buying is a smart financial move. You have two main paths to purchase: paying with cash or securing a loan, often called lease buyout financing.
Here’s a quick comparison of the key numbers you'll need to evaluate:
| Factor | Description | Typical Range/Example |
|---|
| Residual Value | The pre-determined price to buy the car, set at lease signing. | Stated in your lease contract. |
| Purchase Option Fee | A processing fee charged by the leasing company to execute the buyout. | $300 - $500 |
| Documentation Fees | Administrative fees for titling and registration transfer. | Varies by state; $50 - $400 |
| Sales Tax | Tax on the purchase price, typically paid at the DMV. | Based on your state's tax rate. |
| Current Market Value | The car's worth in today's market from sites like Kelley Blue Book. | Can be higher or lower than the residual value. |
Before deciding, get a professional inspection, especially since you know the vehicle's full history. This confirms its condition and uncovers any potential future costs. If the residual value is significantly higher than the current market value, it's usually better to return the lease and walk away.
