The purchase option fee is the fee paid at the end of the contract. It is usually added to the residual fee; and residual fee here means the actual value of the car the buyers pays at the end of the lease period.
The purchase option fee is a must, and if not charged, the automobile is given back to the company and the lessee can be billed for the extra miles he has driven or for the repairing work to be done on the car due to the damages done by him, if any.
This fee can be negotiable, but some refuse to negotiate at all, due to their strict policies.
