For people who don't put too many miles on their vehicle and want to enjoy a model with new features, a lease is often a good option. It typically comes with a more modest down payment and lower monthly payments than an auto loan, as well as a few conditions such as a cap on the miles you can drive each year.

The downside of a lease is that you'll have to return the vehicle at the end of the lease. Instead of eventually getting rid of your monthly payment, as happens when you pay off an auto loan, you'll have to set up another monthly payment by leasing or buying another vehicle.

Another option is to purchase the vehicle at the end of the lease. If you've been enjoying the vehicle, buying it outright after a few years of making payments can be an easy and affordable possibility.

Look into the residual value of the vehicle. A vehicle's value drops fastest in its first few years, and lease payments are calculated to cover this depreciation. Daniel Kurt, writing for the financial site Investopedia, says leasing companies need to estimate how much the vehicle will be worth at the end of the lease and set the payments based on this figure.

Of course, this estimate is not always accurate. If the buyback amount set by the lender is lower than the actual value of the vehicle, you can set up a loan at a discount.

There are several resources available to estimate the vehicle's value based on its age, condition, number of miles traveled, and other factors. Lucy Lazarony, writing for the financial site Bankrate, recommends checking several different sites to determine an average. Particularly popular models are more likely to have a residual value that is lower than its actual retail value.

In determining the vehicle's value and the cost of buying out the lease, you'll also need to see if there is a fee for purchasing the vehicle. Matt Jones, writing for the automotive site Edmunds.com, says dealerships are often reluctant to sell a vehicle at the end of the lease since it results in little or no profit. However, dealerships may be willing to do a lease buyout for you provided you handle your financing with them, or buy an extended warranty in the finance department. That way, the dealership earns something for the work.

Some leasing companies may be more amenable to buyouts. Russ Heaps, writing for Autotrader, says a driver who buys a vehicle at the end of a lease saves them the trouble of reselling the vehicle at auction or at a dealership. For this reason, they may be more willing to cut you a lower price.

Buying the vehicle can be a good idea if you've been keeping it in good shape during the lease or have been driving significantly less than the mileage limit. This can be a fairly easy task if you've been performing regular maintenance such as oil changes. Jones says the vehicle is often covered by a warranty during the lease period as well, allowing you to complete any necessary repairs at little or no cost. A vehicle in good condition will retain more of its value and be more likely to stay reliable for the duration of the loan and beyond.

Ironically, a lease buyout can also make sense if you haven't been treating the vehicle well. Heaps says a leasing company will penalize you for any excess wear and tear on the vehicle, which can significantly ramp up the costs of returning it at the end of the lease. If you decide to purchase it instead, you won't have to pay these penalties.

Similarly, you can avoid any added costs for exceeding the mileage limits. Philip Reed, writing for the financial site NerdWallet, says leasing companies typically charge for each mile you go over the limit, plus a disposition fee to prepare the vehicle for resale. Instead of paying this penalty, it might make more financial sense to simply purchase the vehicle.

Finally, a lease buyout can be a good option if you're happy with the vehicle and interested in driving it for several more years. You'll need to make sure the buyout will fit your budget, especially since future repairs are less likely to be covered by a warranty. However, buying the vehicle will also save you the time and hassle of shopping for another vehicle you'd like to lease or purchase.