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You have come to the end of your auto lease and you enjoy you automobile enough you want to buy it. However, you must do some research in order to get a great deal.

To begin with, you should find out the cost of buying out your lease. Read the fine print of your contract and try to find the “purchase option price”.

The price is established by the leasing company and typically includes the residual value of the car at the end of the lease as well as a purchase-option fee (0 to 0).

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

This estimated price of the vehicle value at the end of the lease is called residual value. It is the loss in value of the car over the lease period. For instance, a car which costs ,000 and a 50% residual
percentage will have an estimated ,000 value the end of the lease.

Once you know this, you must find out the actual value, also called market value, of your car. In other words, how much does your vehicle retail for in the market? To identify a good, reliable estimate you should carry out some pricing research.

Check the price of the car, with similar condition and mileage, with several dealers. Visit web sites, such as Cars.com, Edmunds.com as well as Kelly Blue Book for detailed pricing information. This will give you a reasonable estimate of your car’s retail value.

Now, you need to compare the two amounts. If the residual value is lower than the actual retail value, you have a winner. However, there is a good chance a vehicle coming off a lease is on the high side.

Do not lose hope though. Leasing companies are familiar with the fact that residual values on their cars are greater than their market value. Because of this, they always try to find fair offers. You can reduce the price of your leased car with some persuasive negotiating tactics.

About the Author: Go to these web pages to learn more about Leasing versus Buying a Car as well as How to Get Out of a Car Lease.