How to Buy a Vehicle at the End of a Lease

Many good reasons exist for buying your car at the end of a lease. The buy-out price might be lower than what you can purchase a suitable replacement for, you want to avoid penalties when for excessive wear and tear or over mileage charges and if you've meticulously maintained the car, then you know it's reliable. Most leasing companies prefer you buy the car at the end of the lease--because they will make more money on a retail sale to you than selling the car at auction, which is where most leased automobiles are sold. That means there is no room for negotiation. Armed with the right information, you can sweeten a buy-out deal.

Things You'll Need

• Lease documents

Instructions

1. Check your lease paperwork for the buy-out price on the automobile and the exact date of the end of the lease.

2. Check online sources such as Kelley Blue Book and autotrader.com to determine a good retail value for your car. Print a copy of all your research.

3. Contact the leasing company or dealership to inform them you are interested in purchasing the car at lease end. Ask if it will finance the balance, if you need financing and ask for the terms of the financing and if it is offering any discounts. If the retail value of the car is less than the buy-out price, ask the leasing company to lower the buy-out price of the car to an appropriate price.

4. Compare the financing offer from the leasing company or dealership with that of other lenders to see if you can get a better interest rate.

5. Negotiate the final buy-out price on the car and finance it with the best option based on your research.

References

• Edmunds: Buying Your Leased Car

Resources

• Kelley Blue Book
• Auto Trader