Determining the final cost to purchase a leased vehicle involves assessing several components. This sum generally includes the remaining lease payments, the residual value of the vehicle as stipulated in the original lease agreement, and any additional fees or taxes levied by the leasing company or state. For example, if a lease has six months remaining at $300 per month, a residual value of $15,000, and a $350 purchase option fee, the initial calculation would total $17,150 before sales tax or other potential charges.
Understanding the financial implications of acquiring a vehicle at the end of a lease period is vital for consumers. It allows for a comparison against market values of similar vehicles and can potentially offer a more economical path to ownership than purchasing a new vehicle outright. Historically, this option provided a means to secure favorable pricing on vehicles experiencing rapid depreciation or when market conditions favored leaseholders.