How to buy your leased car

Thinking of keeping your leased car at the end of the contract? This guide breaks down everything UK drivers need to know – from costs to timing – to help you buy your leased car with confidence.

If you’re wondering how to buy your leased car in the UK, you’re not alone. Many drivers ask, “Can you buy your car after the lease ends?” – and the answer is yes, you sometimes can. In this guide, we’ll explain how to buy a leased car, what’s possible, what’s not, and whether it’s the right move for you.

Can you buy a car that you leased?

Usually, no. Most car leases in the UK, especially Contract Hire agreements, are set up more like long-term rentals. They’re not designed for you to buy and keep the car at the end. That’s what sets them apart from finance options such as Hire Purchase (HP) or Personal Contract Purchase (PCP), which do give you that option.

That said, there are exceptions. Some leasing companies might let you buy the car at the end of the lease through what’s known as a lease buyout. It’s not standard practice, though. This comes down to the company and the terms of your agreement. If you’re interested, there’s no harm in asking your leasing provider.

Remember, you can buy a brand new or used car right here on Carwow. And you can sell your car, too. We’re here to help you through every step of your car-changing journey.

What is a lease buyout?

A lease buyout is when you buy your leased car, usually for a price that was set at the start of your lease. That price is based on what the car was expected to be worth at the end of the contract, called the residual value.

Sometimes, depending on the market, the leasing company might be open to negotiating the price a bit.

How does a lease buyout work?

A lease buyout lets you buy your leased car, usually at a price set in your original agreement. Here’s how the process typically works:

• Review your lease: Check your contract to see if a buyout is allowed and what the purchase price (residual value) is.
• Compare market value: Look at what similar cars are selling for to see if the buyout price is a good deal.
• Factor in extra costs: Don’t forget about taxes, registration fees, and any early termination fees if you’re buying before the lease ends.
• Sort out your financing: If you’re not paying in full, you’ll need to arrange a loan or other financing.

If you’re in a personal car leasing agreement in the UK and thinking about buying your car, comparing your buyout terms to similar cars on the used market to get an idea of how much it’s worth can help you decide if it’s the right move.

Is it worth buying your leased car?

Buying your leased car can be a good idea if the buyout price is lower than, or close to, the car’s current market value. It’s also worth considering if you’ve grown attached to the car, want to avoid extra mileage or wear-and-tear fees, or if you want to skip the hassle of finding a new car. However, if the buyout price is higher than what the car’s worth or you want something newer, it might be better to walk away.

Can you extend a car lease?

Can’t or don’t want to buy your leased car? Well, renewing or extending your lease can be a great middle ground.

And just so you know, yes, you can extend a car lease. As soon as you think you might want to, get in touch with your leasing company to go over your options. Maybe your situation has changed, or the new car you ordered is running late. Whatever the reason, they’ll be able to talk you through any extension possibilities.

While the lease company isn’t required to offer an extension, chances are they’ll be pretty flexible.

Buying your leased car FAQs

Can a car dealer buy out your lease?

Yes, a dealer can buy out your lease, but it’s not a typical trade-in since you don’t own the car. The dealer buys it from the leasing company, then you can buy or lease from them.

Is it better to buy your car after a lease?

It really depends on your finances and the car’s worth. If the buyout price is cheaper than what the car’s worth, it’s a good deal. But if you like switching to a new car every few years, leasing again might be the way to go.

Is buying your leased car a good idea?

It can be, but it depends on a few things. If the car is in good condition, under the mileage limit, and the buyout price is less than or close to its market value, it might be a smart move. Your budget matters too: if you can afford it and still like the car, buying it could save you money compared to getting something new.

Car change? Carwow!

Looking for a new set of wheels? With Carwow you can sell your car quickly and for a fair price – as well as find great offers on your next one. Whether you’re looking to buy a car brand new, are after something used or you want to explore car leasing options, Carwow is your one stop shop for new car deals.

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