Lease | Car Then Buy

You know exactly what the car will cost years in advance. If the market value of the car ends up being higher than the residual value, you’re getting a bargain.

Leasing a car with the intent to buy it later—often called a —is essentially a long-term test drive that ends in ownership. It’s a strategic move for drivers who want lower monthly payments now but want to keep the car for the long haul. Here is how the process works and why you might choose it: How it Works lease car then buy

Generally, leasing then buying is slightly more expensive than buying the car brand new with a 0% or low-interest loan, because you pay lease acquisition fees and potentially higher interest rates on the back-end loan. You know exactly what the car will cost years in advance

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? It’s a strategic move for drivers who want

If you love the car and it’s worth more than the buyout price, it’s a smart financial move. If the car has lost more value than expected, you can simply walk away—one of the few "win-win" scenarios in auto finance.

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.