Can I buy my lease car?
Quick answer: In many cases you can buy your lease car, but it depends on the type of agreement and the finance company's policy. Ask them for a purchase or settlement figure and compare it with what the car is realistically worth.
There are several ways to buy your lease car. The best route is to negotiate it at the beginning of the lease -- probably not what you want to hear. If you are reading this, you are likely at the end of your lease already, so it is a little too late. But it can still be done.
Why the finance company might say no
Your first option is to call your lease company and ask if you can buy the car. There is a chance they will say no. If they put it through the car auction, they expect a good price, the car is gone and dealt with, and they assume you will lease another from them. If they sell it to you instead, they become a retailer.
As a retailer they have continued legal responsibility for the car -- if the gearbox blows up a month later, they are responsible for fixing it. Selling through the auctions is simpler for them, because it goes 'sold as seen' and caveat emptor applies. That single difference drives most refusals you will hear.
Buying directly from the lessor
If they do agree to sell to you, they will charge more for that reason. That is no bad thing: you are making a retail purchase and get the protections that come with it, including your Consumer Rights Act position against a trader rather than against a private seller.
- Ask for a written purchase or settlement figure, not a verbal estimate
- Check whether the figure includes VAT, any admin fee and any outstanding end of lease charges
- Compare the figure against a realistic retail book valuation
- Confirm there is no early-termination penalty if you are buying mid-contract
- Get the agreed price in writing before you commit
Bidding at the car auction yourself
The alternative is to go to the car auction and bid on your car yourself. You may not even need to attend in person -- many auctions now let you bid online. It is not just a case of turning up or logging in, though; you will usually need to pre-register and pay a refundable deposit of around £400.
We would not recommend this for most people, because you will be competing against professional traders who do this every day of the week. They know the book values, they spot hidden cosmetic repair work, and they bid cold. For more on where lease cars end up, see where end-of-lease cars get sold.
Using a professional buyer
It is far better to get somebody who knows what they are doing to do it for you. Professional buyers will bid on your behalf for a fee. Alternatively, ask a local dealer if they will purchase the car through the auction for you. If you got the car through a local main dealership, you could even ask them. You will pay more, but you are now making a retail sale with the legal protection that comes with it.
Negotiating the purchase at the start of the lease
We believe the best way to buy a lease car is to buy it through the lease company by negotiating it at the beginning of the lease -- which means understanding how the lease agreement is structured from the moment you sign, not just at the end. You will not get it at trade price, but you will buy at book price for a car in average condition, often without them inspecting it. That puts you at an advantage: if you know you will be keeping the car, you can prepare it from the start, protect it with coatings, keep it maintained, and finish the lease with a car in excellent condition.
The price difference between average and excellent condition can run into thousands of pounds -- so you end up with a genuine bargain.
Looking after a car you plan to buy
- Apply car paint protection or a ceramic coating at handover while the paintwork is still fresh
- Stay on top of maintenance servicing using the manufacturer schedule
- Address stone chips and light scratches early, before they spread
- Keep the interior covered and cleaned so wear marks stay minimal
- Hold onto every service invoice and receipt -- it supports the final value
Weighing up the decision
Buying your lease car at the end only makes sense if the purchase figure lands below the car's retail value, after allowing for any repair work the lessor would otherwise charge you for. If it comes in above retail, you are better off handing it back, accepting fair acceptable repair deductions and shopping for a different car on the open market.