Buying Your Vehicle at Lease End

Educational explainer. U.S.-focused; costs and rules vary by state and by country.

A lease-end buyout can be a strong move if the buyout price (residual) is below what the vehicle would cost you to replace on the open market—especially if you know the vehicle’s history and it’s been reliable.

Plain-English test: If you like the vehicle and the buyout is cheaper than replacing it, buying can reduce risk.

Key points

Residual value is set at signing and is usually not negotiable.
Buyout makes sense when market value is higher than the buyout price.
You may still pay taxes and a purchase option fee—check paperwork.
Financing a buyout is common through banks or credit unions.

FAQ

Is a lease buyout negotiable?

Usually no; the residual is contract-based.

Are there fees on buyout?

Sometimes. Many leases include a purchase option fee; review your paperwork.