Lease Car Then Buy Apr 2026

When you sign the lease, the dealer sets a "residual value." This is the pre-determined price you can buy the car for at the end of the lease.

You drive the car for a set term (usually 3 or 36 months) while paying for its depreciation rather than the full purchase price. lease car then buy

Leasing typically requires a smaller down payment and offers lower monthly installments than a traditional auto loan. When you sign the lease, the dealer sets a "residual value

Unless you have the cash ready, you’ll need to apply for a "used car loan" to cover the residual price at the end of the lease. Unless you have the cash ready, you’ll need

At the end of your term, you can either return the keys or pay that residual price (plus any fees) to own the car outright. Why Lease-to-Buy?