ABA Family Legal Guide

Automobiles

Buying, Renting, and Leasing a Car

Car Leasing and Renting

Regarding a car lease, what is a purchase option?

A purchase option allows you to buy the car when your lease term ends. The lessor must state the purchase price or the basis for setting this price in the initial lease contract. Purchase options are more common in open-end leases than in closed-end leases.