What is a lease buyout?
A buyout lets you purchase the leased car instead of returning it. The lease-end price is usually the residual value plus a purchase fee. If the car is worth more than the residual, a buyout can be a good deal; if less, returning it is usually smarter.
Why it matters
Nearly all leases include a purchase option. The price and any fees are set in the contract.
What dealers don't tell you
- A purchase-option fee stacked on top of the residual.
- An early-buyout price that includes remaining finance charges.
How to negotiate it
- Compare the buyout price to the car's market value before deciding.
- Ask whether the purchase-option fee can be waived.
Worked example
"Lessee may purchase the vehicle at lease end for the residual value of $18,500 plus a $350 purchase-option fee."
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Explain my car leaseFrequently asked questions
Should I buy out my lease?
Buy out the lease when the car is worth more than the residual/buyout price, or when you love the car and it's in great shape. Otherwise, returning it is often cheaper.