When purchasing a leased car, you pay the lease amount either at the end of the lease term or before it expires. Typically, lease agreements include a pre-purchase option at a pre-established price, which was determined when the lease was initially signed. If you are considering acquiring your leased car, it is important to conduct thorough research and understand how various factors, such as the timing of the purchase, the current value of the car, and financing terms, will affect the final purchase price.

Advantages:

• You get to drive a car and not just pay for its usage but also gradually pay for its cost, so at the end of the contract, it becomes your property. This is very convenient because you don't need to pay the full purchase price upfront; you can spread it out over several years.
• You can always drive the latest model of the car, which is typically covered by the manufacturer's new car warranty.
• You can drive a car that you might not be able to afford with a one-time purchase.
• Business owners may benefit from tax advantages.

Disadvantages:

• You may be obligated to make monthly payments for an extended period. With ownership, once the loan is paid off, the car becomes yours, and there is no need for a monthly payment.
• Some leasing contracts in leasing companies usually specify a limited number of miles. Exceeding this limit may result in excess mileage penalties.
• If you dislike the car or can't afford the payments and want to terminate the contract early, you will incur early termination fees and penalties, all due at once.
• There may be an additional fee at the end of the lease term.