We know that once you’ve had a car for a couple of years you might want to keep it for a little longer. For some drivers this is simply a case of extending their lease but others may want to buy the car. This article will answer whether that’s an option for you and give you more information on the process.

Can I Buy a Lease Car?

Unfortunately, there’s no one answer to this question. There are a few different factors that come into play.

Firstly, it is entirely up to your lease funder whether they allow you to purchase the car. Some of our funders do, some allow purchase in certain circumstances and some won’t offer it at all.

Secondly, the type of lease you’re in may affect whether you can buy the car or not. By this we mean whether you are in a personal or business lease, and if you’re in your original lease term, a formal extension or an informal one

If you’re interested in buying your lease car and we arranged it for you then you can get in touch with our Support Team on 0330 221 0000 (option 3) and our team will be able to give you further information for your car.

How to Buy a Lease Car

If you’re interested in buying your leased car then you will first need to speak to your funder to confirm that’s an option available for you. If it is then you can proceed with their purchase process. This may vary between funders but generally will follow the steps we’ll outline next.

You will need to request a quote for a purchase price. This will be a quote based on the vehicle’s age, condition, the market demand and other factors to give you a cost to buy the car.

Something to be aware of is depending on where you are in the lease term (ie still in contract term, near the end of it or outside of it) then you may also need to request an early termination quote. This is because if you purchase the car six months into a three year contract then you’ll need to end the lease agreement before you can buy it. This is why we generally recommend purchasing a vehicle at the end of the contract.

Once you have received the quote you can then decide if you want to purchase the vehicle based on its sale price. The quote will only be valid for a set period (usually 30 days) and you will need to sign and return it to the funder within this time to secure the price.

Your funder will then confirm receipt of this and that the purchase is going ahead. Payment will be made and they will arrange for the V5 to be transferred into your name.

How Long Does It Take to Buy a Lease Car?

The exact length of time can vary but it will usually be between two and six weeks. The funder will give you a more accurate timeframe when you first look to buy the vehicle, and there are some things you can do to keep things moving (such as completing the quote document) to speed it up or slow it down.

Buying a Leased Company Car

Some funders will have a different process if you are trying to buy a car that’s leased through a business. This is because there are some differences between the regulations on a personal contract hire (PCH) and business contract hire (BCH).

For example, some funders will not allow the business or any of its directors to purchase the vehicle but the individual driver may be able to. As it’s a little more complex to buy a business lease car we recommend giving us or your funder a call to find out any restrictions they have in place.

Can I Negotiate the Purchase Price Lease?

No, generally the price offered on the quote will be the only price that the funder will accept. This is because there are a number of factors that are considered as part of the calculations and the price reached is one determined to be fair to both parties.

End of Car Lease Options

There are a few options available at the end of your lease other than buying the car that you might consider instead.

Obviously, you can hand it back at the end of your original term. You just need to contact the funder around two weeks before the end of your lease to arrange for the car to be collected. It is up to you to arrange for the vehicle to be collected and if you don’t then you will go into an informal extension, and you will be charged for any additional days you have the vehicle.

Alternatively, if you want to keep the vehicle but don’t want to commit to buying it then you might want to look at extending the lease. Most funders will let you extend the lease the lease formally for six or 12 months, provided this is in place before the original contract end date.

We have a detailed end of lease guide with a more comprehensive look at your options and the handover process if you want more information on this.

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