Buy a car at the end of your lease

So youve reached the end of your lease and have decided you want to keep your current Vehicle. As with buying a new car, there is research that needs to be done to ensure you get a good deal.

The first step is to know the cost in order to buy yourself out of your lease. Short term car leasing are the most popular deals in which people buy the car at the end of the lease as the buyer hasn't spent hundreds to lease.
 
Read all the small print in your contract and keep an eye out for the “purchase option price”.

This is the price set by the leasing company and usually takes into consideration the residual value of the car at the end of the lease and a purchase-option fee that can range from £300 to £500.

When you signed the contract, your monthly payments were calculated as the difference between the vehicle’s sticker price and its estimated value at the end of the lease, plus a monthly financing fee.

This estimated cost of the car value when the lease ends, is what is termed in leasing jargon “residual value”.

This is the loss in value otherwise known as expected depreciation – of the vehicle over the scheduled-lease period.

Best car leasing tips, For example, a car with a face value of £40,000 and a 50% residual percentage will have an estimated £20,000 value when the lease ends

Once you have worked out the cost of buying out your lease, you need to assertain the actual value, which is also termed “market value”, of your vehicle.

So, how much will your car retail for in the market? In order to get an accurate good, solid estimate you need to do some pricing research.
Compare the prices of other vehicles, with similar mileage and condition, with different dealers.

Use online pricing websites, such as Cars.com, Edmunds.com and Kelly Blue Book to give you detailed pricing information.
Obtaining pricing information from various sources will give you a good estimate of your vehicle’s retail value.
 
All you then need to do now is compare the two amounts.
If the residual value is lower than the actual retail value, than you’re into a winner.

Unfortunately, there is a good chance coming off  car leases could be a little higher however.

Don’t despair though. Leasing companies know that residual values on their vehicles are greater than their market value and due to this are
always on the look out for offers.
 
With good negotiating tactics you may be able to knock down the price of your leased vehicle.If you put forward a price that is below your actual target you can negotiate until you end up with a figure close to what you intended to pay.