It’s pretty straightforward. We send you a payout letter from the lender explaining how much the residual value of the vehicle is. This is the amount required as a final payment for you to own the car outright.
What people most commonly do at that point is sell the car and use the sale funds to pay out the residual amount and keep any profit tax free. Then they start again with a new lease on a new car.
The other options are to pay the residual and keep the car, or re-lease the vehicle for another 12, 24 or 36-month term.