financing
Lease Buyout
Purchasing a leased asset at end of lease term
Also known as: lease purchase, end of lease buyout, residual buyout
What You Need to Know
A lease buyout is the purchase of a leased asset (typically a vehicle) at the end or during the lease term. The buyout price, also called the residual value, is predetermined in the lease contract. Lessees may choose to buy out their lease if the vehicle's market value exceeds the residual value or if they want to keep the vehicle.
Sources & References
This information is sourced from authoritative government and academic institutions:
- consumerfinance.gov
https://www.consumerfinance.gov/owning-a-car/leasing-a-car/
Related Calculators & Tools
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