Determining the cost to purchase a leased vehicle at the end of the lease term involves considering the residual value stipulated in the lease agreement, any applicable fees, and potentially outstanding loan balances. For example, if a lease agreement specifies a residual value of $15,000 and a $500 purchase fee, the anticipated cost would be $15,500. This process allows lessees to compare the cost of purchasing the vehicle against the market value and make an informed decision.
Understanding the financial implications associated with this process is crucial for sound decision-making at the end of a lease term. Historically, this process has become increasingly relevant as leasing gained popularity. Accurately assessing the cost provides lessees with the power to negotiate better deals or explore alternative options like purchasing a different vehicle. This knowledge ultimately contributes to greater financial control and potentially significant cost savings.