End-of-Lease Options
At the end of your lease, you have several structured options depending on your goals and the value of the vehicle.
Your Main Options
1. Buy the Vehicle
- Purchase the vehicle at the pre-determined residual value
- A strong option if the vehicle’s market value is higher than the buyout
2. Trade Into Another Vehicle
- Transition into a new lease or different vehicle
- Any positive equity may be applied toward your next deal
3. Extend Your Lease
- Extend your current lease structure and continue driving the same vehicle for an additional period
What to Consider
- Current market value vs residual value
- Your driving needs going forward
- Condition of the vehicle
- Potential equity in the vehicle
FAQ
Q: What happens at the end of a lease?
A: You can buy the vehicle, trade into another one, or extend your lease.
Q: Can I just return the vehicle and walk away?
A: Lease agreements are structured around a residual value, so the end of term typically involves a decision to buy, trade, or extend rather than simply returning the vehicle with no further consideration.
Q: Is buying out my lease a good idea?
A: It can be, especially if the vehicle is worth more than the residual value.