Buy it
Your contract fixed a purchase price years ago. Whether that price is good today depends on what the car is worth now, which nobody can state exactly, but which public market data can bracket into a reasonable range.
The car appears to be worth more than your buyout price, you're over your mileage limit, or there's enough wear that returning it would trigger charges.
Buying means financing or paying cash, plus sales tax and registration in most states. A low buyout price isn't a bargain if the car needs work.
A few days once financed
Purchase the car for the buyout price already written into your lease, instead of handing it back.
What it means
Buy the car for the price already written into your lease contract (the buyout price). This is worth doing when the car appears to be worth more today than that price.
How it works
- 1Find the buyout (or residual) figure in your lease agreement.
- 2Compare it to an estimated current market value for your year, model, mileage, and condition.
- 3If the estimated value sits above the buyout, buying keeps that difference with you instead of the lender.
- 4You pay cash or finance the purchase, then handle tax and title as a normal used-car purchase.
What it costs
Buyout price
Set in your contract
Sometimes called the residual or purchase option price. Some lenders add a purchase option fee on top.
Sales tax and fees
Depends on your state
Most states tax a lease buyout like any used-car purchase. Registration and title fees apply too.
Financing
Rate depends on your credit
A used-car loan on a buyout is usually priced like any other used-car loan. Shop it before you commit.
What to do next
- 1Locate the buyout price and any purchase option fee in your contract.
- 2Get an estimated market range for your car as it sits today, including mileage and condition.
- 3Add expected tax and fees so you're comparing full cost, not sticker to sticker.
- 4Line up financing before you call the lender, so the rate isn't decided for you.
- 5Compare the total against what returning would likely cost you in wear and mileage charges.
Calculate your buyout price.
We compare the buyout price in your contract against an estimated market value for your car, so you can see whether buying it looks like a bargain or a bad deal.
Step 1 of 6 ยทYour goal
Compare with the others
Hand the car back at the end of the term and settle whatever the inspection and your contract say you owe.
Use the gap between your car's estimated value and your buyout price as a down payment on whatever comes next.
End the lease before the term is up, either by transferring it, selling the car through a buyout, or paying the lender's early termination amount.
Buy it: common questions
Compare it to an estimated market range for your exact car and mileage. If the estimated range sits comfortably above the buyout, that's a signal worth acting on, but treat it as an approximation, not a valuation.
Ready to see your estimated number?
Three minutes, no account, no credit check. Just an honest range and a clear read on your best exit.