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How to Buy a Car Off a Lease

If your lease is almost up, but you'd like to keep your vehicle, learn how to negotiate with your bank to purchase your car off a lease.


  • Step 1: Check your paperwork Check the lease papers to see whether a buyout amount is listed. Find the car's residual value, plus a purchase-option fee. Typically, the purchase-option fee is $300 to $600.
  • TIP: You can also buy your car before the lease ends. This is called an early buyout and is typically more complicated than a lease-end buyout because of pricing factors. Check with your bank or lease holder for more information.
  • Step 2: Determine market value Look at the Kelley Blue Book to determine your car's fair market value. Compare the market value to the residual value to see if you'd be getting a good deal.
  • TIP: Check with your leasing company to make sure your buyout will not be considered an early termination of the lease.
  • Step 3: Negotiate a price Discuss pricing and buyout options with your dealer or leasing company. Ask about other incentives, such as eliminating the purchase-option fee or a discount lease buyout financing.
  • Step 4: Shop around for financing Shop around for the best financing rates on a lease-buyout loan. Your current leasing company may not offer the best rate, so it pays to look elsewhere.
  • Step 5: Be persistent Be persistent with the leasing company. After all, if you simply returned the car, they could only expect to get a wholesale price at a dealer auction. Explain to them that it's a win-win situation.
  • FACT: In 1908, a Ford Model T cost $850. Four years later the price dropped to $550.

You Will Need

  • Lease paperwork
  • Kelley Blue Book value
  • Financing rates
  • Persistance

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