Yes, you can typically keep a car after a lease ends through a process called a lease buyout. This involves purchasing the vehicle from the leasing company for its predetermined residual value, which is the estimated worth of the car at the end of the lease term, as stated in your contract.
The decision to buy your leased car hinges on comparing this residual value to the car's current fair market value. If the residual value is lower than what similar models are selling for, the buyout is a financially smart move. However, you must also factor in costs like sales tax, registration fees, and a potential purchase option fee. It's crucial to get a professional inspection to check for excessive wear and tear that you'd now be responsible for fixing.
The table below illustrates how the residual value compares to the market price for common leased models, demonstrating when a buyout is advantageous.
| Vehicle Model | Typical Lease Term | Residual Value (%) | Average Market Value at Lease End | Buyout Advantage? |
|---|
| Honda CR-V LX | 36 months / 12k mi | 58% | $26,500 | Yes, if residual is ~$25,370 |
| Toyota Camry LE | 36 months / 10k mi | 55% | $24,800 | Yes, if residual is ~$23,100 |
| Ford F-150 XLT | 36 months / 15k mi | 60% | $41,000 | Likely, if residual is ~$37,800 |
| Jeep Grand Cherokee | 39 months / 12k mi | 52% | $35,200 | Depends on exact residual |
| BMW 330i | 36 months / 10k mi | 56% | $38,500 | Often not, due to high residual |
Before deciding, secure financing pre-approval from your bank or credit union, as their interest rates are often better than the leasing company's financing offer. Weigh the pros of owning a car you know the history of against the cons of taking on long-term maintenance costs for an aging vehicle.
