Things You'll Need:
- Lease contract
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Step 1
Review your contract. About six months prior to the end of the lease, your leasing company will likely start contacting you to let them know what you've decided. Take your time responding as you'll want to evaluate other cars, your car and finance options before giving a decision.
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Step 2
Review financing options. You can buy the car outright for the purchase price (termed the "residual value") you negotiated at the start of the lease. To do this, either provide a cashier's check to the leasing company or ask what their financing options are. Most leasing companies have a leasing agent who can run the numbers for you while you're on the phone.
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Step 3
Ask about extended warranties. Your car dealership's business manager can provide the cost information and percentage use of an extended warranty. While it's not worth buying one from the dealership, it is valuable to know what percentage of extended warranty owners have used their warranty package. If it's over 50 percent, it's a good idea to consider buying. Your leasing company or another insurer can provide the same warranty for a much cheaper price, however. So give your leasing agent a call to find out what their costs are.
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Step 4
Negotiate the residual value. If you're buying a car that you know you've taken care of and you think is a good price, you're doing the leasing company a favor. They don't have to worry about the disposition of the asset once the lease has ended, so be sure to discuss any possible room to drop the price. Point out any money you've put in to the car recently (new tires, brakes).
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Step 5
Buy the car. Your leasing agent will walk you through the paperwork process for a new loan or for an outright purchase.
