How to Negotiate Buying Your Leased Vehicle

With most vehicle leases you have the option to buy the vehicle at the end of the lease period. This is called a "lease payoff" and just means that you have the option to purchase the vehicle from the leasing company. If you choose to purchase the vehicle, this benefits the lease company because they don't have to worry about finding something to do with the vehicle after you return it. For this reason, many lease companies are willing to negotiate the terms of the lease payoff at the end of the lease period.

Instructions

1

Check the residual value of your vehicle in the lease contract. Compare this value to the values published in automotive price guides like Edmunds, Kelley Blue Book and the NADA guide. Note that if the residual price is equal to or lower than the published value of your vehicle, you will not likely be able to negotiate a lower price; however, purchasing the car may be in your interest even without negotiation if this is the case.

2

Call the leasing company and speak to a representative about lease-end options. Ask for the buyout price for the vehicle. Note that this might be slightly different than the residual value of the car because your security deposit and other fees may be deducted. Ensure you are talking to someone with the authority to modify the buyout price before you attempt to negotiate a lower price.

3

Understand that the leasing company will either be forced to sell your vehicle as used or accept a wholesale price at auction if you choose not to buy the car. Choose a starting point for negotiation that is well below the residual value but still realistic. Make your offer to the leasing company and wait for a counter offer. Know that if you don't receive any response to your offer, your leasing company may not negotiate buyout prices.

4

Avoid telling the leasing company about any problems with the car. Remember that if the company thinks you are buying the car because it is damaged or you have exceeded the mileage limit they will be less willing to negotiate a lower price.

5

Negotiate with the company for as long as necessary until you arrive at a fair price for the vehicle. Understand that you may have to extend your lease for a month or two if negotiations take an extended amount of time; you can expect to spend at least a few weeks in negotiations before arriving at a price to which both you and the company can agree.