Lease Buyout Price
Also known as: Purchase Option Price, Buyout Amount, Residual Purchase Price
The lease buyout price is the amount you can purchase the vehicle for at the end of the lease, typically equal to the residual value plus any remaining fees. It is stated in your lease contract.
How Lease Buyout Price Works
At lease end, you have the option to buy the vehicle for the residual value specified in your contract. This can be a good deal if the vehicle's market value exceeds the residual. You may also be charged a purchase option fee ($200-$500) and sales tax on the buyout amount. Some manufacturers also allow early buyout, though the payoff amount will be higher than the residual (it includes remaining payments and fees).
Example
Lease residual: $28,000. Vehicle market value: $32,000. Buying at $28,000 + $300 purchase option fee = $28,300. You save $3,700 vs. buying the same car on the used market.
Frequently Asked Questions
Can you negotiate a lease buyout price?
The buyout price at lease end is set in your contract (the residual value) and is generally not negotiable. However, some manufacturers may negotiate the buyout price if the vehicle is worth less than the residual. It depends on the leasing company's policies.
Is it worth buying your leased car?
It depends on whether the residual value is below market value. If you can buy the car for $28,000 (residual) but it sells for $32,000 on the used market, it's a good deal. Check CarWhere and other sources for current market values before deciding.
Related Lease Terms
Residual value is the projected worth of a leased vehicle at the end of the lease term, expressed as a percentage of MSRP.
Disposition FeeA disposition fee is a charge (typically $300-$500) assessed by the leasing company when you return a leased vehicle at the end of the lease term.
Capitalized CostThe capitalized cost is the total amount being financed in a lease — the lease equivalent of a purchase price.
See Real Lease Deals
Compare verified lease payments from real buyers. Know what a good deal looks like before you sign.