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Your lease-end options
At the normal end of a lease, you may have the following options:
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return your vehicle
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extend your lease
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purchase
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trade
Depending on the details of your particular lease situation, some of these options may be available to you while others will not.
How it works
About a month before the end of your lease, you will be contacted by your leasing company. They will instruct you regarding having your vehicle inspected and returned to them. Normally, the return is made to a dealer, from which the lease company will pick up the vehicle.
They may also remind you of your option to purchase your vehicle and provide you a purchase buyout price, which may be a better price than stated in your lease contract. They may also offer to extend your lease for specified terms.
Inspection
Get ready for the Inspection - On inspection day – They are willing to inspect the car in your driveway or your place of work. They use a handheld device to check various spots on the vehicle if it was original paint. They check if there was tampering with the odometer, they measure the depth of tread on the tires, as well as the spare tire. They look down the sides of the car to check for signs of collision. They spend about 20 minutes and check a number of different things. At the end you will get an Inspection report right away confirming the quality and condition.
Schedule the Return
Contact the dealership to set an appointment. Make sure you have both sets of keys, owners’ manual, and the Inspection Report. It’s recommend you bring along a friend in a 2nd car to drive you back home. The dealer will have you sign an odometer statement and return your plates to you. Please make sure all personal items are removed form vehicle (especially CD’s).
Buying your lease
Your first step is to call the number listed on your monthly payment slip. You will usually reach an automated phone menu. One of the choices is for "lease end options." When you reach a human being, tell them you want the "buy-out amount" for your leased vehicle. The buy-out amount may be slightly different from the residual because they will deduct your security deposit. Also, bear in mind that if you call several months before the lease ends, they will give you a buy-out amount for that date, not the end of the lease.
When you have your buy-out amount contact the dealerships business manager to finalize your deal. If you prefer to finance the buy-out you must fill out a full credit application, if you prefer to pay cash you can get the out the door number from the business manager.
Trade in your lease
Contact the leasing company or financial institution that holds the lease on your current car, and inform the customer service representative that you wish to trade the vehicle for a new one. At that point, your leasing company should pinpoint an exact amount for the payoff of the lease, which should include fees or penalties for early termination of the lease. Get this figure in writing, so you can produce it to the car dealership when you trade the vehicle in on a new car.
Bring the payoff figure, along with a copy of the original lease, to the dealership. The dealership will conduct an appraisal of your vehicle and place a value based on the new vehicle that you select.
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