So you've negotiated a 24-month lease, paid a cap cost reduction, and driven home in a bargain. But as the time approaches to turn in the vehicle, you decide you really like what you're driving. With rare exceptions, it will cost you more in the long run to lease and then buy. But there are some exceptions. Most lease agreements contain a clause dubbed the purchase option, and it lays out terms for buying a vehicle at the end of the lease.
Some contracts spell out a formula basing the purchase price on the vehicle's going market rate.
With other agreements, the price is fixed up front, at or near the vehicle's projected residual. And if you have an especially hot product, it may be worth more than anticipated. That's what happened to Mike Burch, a financial analyst from Boston. So he bought it, turned around and resold it, and pocketed the difference. The bottom line is that if you'd like to get a new car every two to three years, want to get the maximum car for a minimal investment and don't mind the fact that you'll always be making monthly payments, then a lease is the right deal for you.