Back to Learn
Early Lease Buyout vs. End-of-Term Lease Buyout: Which One Should You Choose?
Published 8/15/25
⏱️ Estimated Read Time: 5–6 minutes
📌 TL;DR: If you're unsure whether you want to keep the car long term, waiting makes sense. But if you know you want to buy out the car you love eventually, you may as well reap the benefits of a lease buyout now.
If you know enough about lease buyouts to ask the question, our take is that you're ready to go, no matter if you have 6 months or 12 months left on your lease.
First things first: Enter your license plate or VIN on our lease buyout calculator to estimate your new monthly payment. That might be all you need to know to make your decision!
Back to our point, though: there are plenty of reasons to move forward with a lease buyout once you know you want to do it.
- The interest rate on a lease is typically higher than the rate you will get for financing a lease buyout, so the sooner you buy it, the less interest you may end up paying in the long run.
- Some drivers buy out their lease 6–12 months early specifically to get the most from their car’s value. With the positive lease equity you’ve built up to this point, it can make sense to put your monthly payments toward ownership instead of "rent" to the dealer.
- When you buy out your lease early, you're in the driver's seat (we love a pun) for longer as you determine the destiny of your vehicle. You may even be able to leverage a trade as a down payment when the new model rolls out in 3-6 months.
Some of you may be here for a more foundational breakdown, though, so we'll continue the conversation with some basic examples.
Early Lease Buyout: When It Makes Sense
Buying your car early is like proposing on the second date. Bold? Yes. But it if you know it's right, it's right. So, what makes it the right choice?
Best for:
- Cars with market value higher than the lease buyout price
- People close to their mileage limit (or way past it)
- Drivers who want to avoid wear-and-tear charges
What You’ll Pay:
- Remaining lease payments (they'll be rolled into your new financing setup)
- The residual value
- Sales tax, registration, title, and doc fees
Example:
Let’s say your residual value is $18,000, and you’ve got $2,000 left in payments. If the market value is $23,000, an early buyout could net you $3,000–$4,000 in equity that can go towards your new buyout loan.
Not too shabby.
End-of-Term Lease Buyout: The Classic Route
The lease is up. The car’s still cute. Do you commit?
This is the more "no brainer" option—no more time to sit on the decision, no remaining lease payments to account for. Just you, the residual value, and a nice pile of DMV paperwork (that Lease End will take care of for you, obvs).
Best for:
- Drivers who want to wait and see how the car holds up
- People who need time to prepare financially
- Anyone who just really likes a deadline
What You’ll Pay:
- The residual value (aka pre-set purchase price)
- Sales tax, title, registration, and doc fees
- Any past-due lease payments (if any)
Early Buyout vs. End-of-Term: Side-by-Side
| Feature | Early Buyout | End-of-Term Buyout |
| Timing | Anytime during lease, but often when there are 6-12 months left on the lease | 6 months or fewer left on the lease |
| Payment Structure | Residual + remaining payments + fees | Residual + fees |
| Potential Equity | Higher if market value > residual early | Locked in price, may be above/below value |
| Lease Return Fees Avoided | Yes (mileage, wear, disposition) | Yes (mileage, wear, disposition) |
Pro Tip: Use Lease End to Make It Easy
Whether you’re jumping early or cruising to the finish line, Lease End helps you:
- Get a clear payoff quote
- Secure low-rate financing
- Handle all paperwork (title, registration, DMV—yes, we deal with the DMV so you don’t have to)
- Complete the buyout online from your couch
We’re basically your best friend in buyouts.
Which Buyout Strategy Is Right for You?
Ask yourself:
- Is my car worth more than the buyout price? (Check sites like KBB or ask Lease End for a quick market value estimate.)
- Am I over my mileage or facing other end-of-lease fees? (Then buying early could save you big.)
- Do I plan to keep this car long term? (Then end-of-term may give you more time to decide—but if you know you want to keep it anyway, there's no need to wait.)
Final Thoughts
There’s no one-size-fits-all answer here—but that’s what Lease End is for.
Whether you're ready to buy out early, planning to wait it out, or just want someone to tell you what forms to fill out, we’re here to help you finish your lease strong—and maybe even come out ahead.
About the author
Adam Broud
Adam Broud is a writer and comedian based out of Salt Lake City, Utah. As a professional stand-up comedian with an MBA, his writing uniquely blends the worlds of business and comedy. Adam's writing for ads and comedy has appeared in places such as Buzzfeed, Vanity Fair, your television, and his mom's box of keepsakes. Feel free to review his writing from any of those places, but just know it's kinda weird if you choose his mom's house.
Lease End's mission is to empower auto lease owners with the technology to easily exit their lease. If you'd like to learn more about the lease-end options available to you, please don't hesitate to contact us. Our expert advisors are always prepared to answer your questions and are committed to finding the right plan for your individual needs.
©2025 Lease End
©2025 Lease End
Give Us a Call:
(844) 902-2842