| You've come to the end of your lease and you | | | | calculated as the difference between the vehicle's |
| like you car enough you want to keep it in the | | | | sticker price and its estimated value at the end of |
| driveway. Just like buying a used car, there is | | | | the lease, plus a monthly financing fee. This |
| some research to be done to nail a good deal. | | | | estimated price of the car value at the end of |
| First, you need to know the cost of buying out | | | | the lease is what is termed in leasing jargon |
| your lease. Read the fine print of your contract | | | | "residual value". It is the expected depreciation - |
| and look for the "purchase option price". This price | | | | or loss in value - of the vehicle over the |
| is set by the leasing company and usually | | | | scheduled-lease period. For example, a car with a |
| comprises the residual value of the car at the end | | | | sticker price of $40,000 and a 50% residual |
| of the lease plus a purchase-option fee ranging | | | | percentage will have an estimated $20,000 value |
| from $300 to $500. When you signed on the | | | | at lease end. |
| dotted line, your monthly payments were | | | | |