Determining the cost to purchase a leased vehicle at the end of the lease term involves several key factors. Typically, this figure is based on the vehicle’s residual value, a predetermined amount stipulated in the lease agreement, which represents the vehicle’s projected worth at lease end. Additional fees, such as a purchase option fee or any remaining lease payments, might also apply. For example, a vehicle with a residual value of $15,000 and a $300 purchase option fee would result in a buyout price of $15,300.
Understanding the cost of purchasing a leased vehicle empowers lessees to make informed decisions about their transportation needs at the conclusion of the lease term. This knowledge provides the clarity necessary to compare the buyout price against purchasing a new or used vehicle, facilitating a financially sound choice. Historically, lease buyouts were less common, but as vehicle values have fluctuated, understanding this calculation has become increasingly relevant for consumers.
