Lease Buyout.
In plain English
A lease buyout is when you buy the car you have been leasing rather than turning it in. The price is the residual value, the dollar amount the leasing company predicted the car would be worth at lease-end, which was written into your contract when you signed. You can do a lease-end buyout when the term is over, or sometimes an early buyout partway through. If the car is actually worth more on the open market than its residual value, a buyout can be a genuinely good deal.
01Why it matters
When used-car prices run high, your contract's residual value can be lower than what the car is really worth, meaning a buyout lets you buy below market and avoid mileage and wear charges. It is one of the few moments a lease can work in your favor.
02The math, step by step
Your lease lists a residual value of $18,000. At lease-end, similar used cars are selling for $22,000. Buying yours out at $18,000 (plus any purchase fee) means you get a car worth $22,000 and skip any over-mileage and disposition charges.
03What this is NOT
A lease buyout is not extending the lease. An extension keeps you renting the car for a few more months; a buyout makes you the owner, ending the lease entirely.
04Receipts
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