Process of Buying a Leased Car

When you first sign your car lease agreement, it may have a special condition included called a buyout option that allows you to purchase the vehicle at lease-end if you wish. So if you grow attached to the vehicle during the lease period, you can start the process of buying it from the dealership instead of turning over the keys.

Lease Terms

The first step in the process of buying a leased car is to review the original lease. Determine the residual value listed, which is likely the amount the dealer will use to propose the final sales price. Check the agreement for any additional fees associated with the buyout option. Keep in mind that you still have to pay additional lease-end fees as well, such as costs for going over the included miles associated with the agreement.

Blue Book Value

Investigate the Kelley Blue Book value of the car before agreeing to pay the dealer's suggested price based on the residual value. The estimated value of that particular year, make and model of the car at the beginning of the lease may change over the years. You don't want to end up paying more than what the vehicle is worth on the market.

Inform and Negotiate With Dealer

Inform the dealer of your possible plans. Call or visit the dealer before lease-end. Make an offer based on the Blue Book value to begin negotiations on the price --- the same way you would if you were walking into a dealership for the first time to make a purchase. Keep in mind that the dealer may choose not to come down on the price and stick with the selling price as outlined in the original agreement. If the dealer won't budge on the price, you may find that you're better off just buying another car of a similar style and year at a better deal.

Find Financing

Once you agree to a final price for the leased car, the next step is getting financing to purchase the vehicle. Don't assume that the same financing company that arranged the lease will automatically loan you money to make the purchase. You may have to call around to other lenders to seek approval for a new auto loan with standard payments containing both principal and interest costs.