What Is a Car Lease Buyout

Buying out a car lease refers to the process of buying a car that is currently being leased or for a car lease that just ended. There are only 2 scenarios of a car lease buyout.

  1. The car lease buyout is before the agreed upon car lease end date – the lease company sets the purchase price based on the amount remaining on the lease plus the residual value of the vehicle. The residual value is specified on the lease agreement contract.
  2. The car lease buyout is at the end of the car lease end date –  the purchase price is the purchase option price specified in the lease contract. In my experience the car lease buyout at the end of the car lease end date is the residual value. The residual value is specified on the lease agreement contract.

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