Early Lease Buyout vs. End-of-Term Lease Buyout: Which One Should You Choose?

Adam Broud

Published 4/28/25

⏱️ Estimated Read Time: 5–6 minutes

📌 TL;DR: Should you buy out your lease early or wait until the end? If your car is worth more than its lease buyout price, buying early can save you money and spare you those brutal end-of-lease fees. But sometimes, patience pays off—especially if you're unsure whether you want to keep the car long term. Either way, Lease End can help you do it all (potentially) without setting foot in a dealership.

When it comes to your leased car, the buyout question worth asking is:
Should you buy out your lease early, or wait until the lease ends?

So, let’s break it down your options!

What’s the Difference?

Let’s start with definitions:

Early Lease Buyout = You purchase the car before the lease term ends.
End-of-Term Lease Buyout = You buy the car at the end of the lease, typically for the residual value set in your contract.

The car’s the same. The timing—and the cost structure—is what changes.

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
People who plan to resell the car for a profit

What You’ll Pay:

Remaining lease payments
The residual value
Early termination fee (usually $300–$500)
Sales tax, registration, and title 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 and save you from extra lease fees.

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 common option—no early termination fees, no extra lease payments. Just you, the residual value, and a nice pile of DMV paperwork.

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 and title/registration 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	Only at lease end
Payment Structure	Residual + remaining payments + fees	Residual + standard fees
Potential Equity	Higher if market value > residual early	Locked in price, may be above/below value
Lease Fees Avoided	Yes (mileage, wear, disposition)	No
Warranty Coverage	May end sooner	May still be active

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 equity estimate.)
Am I over my mileage or facing lease-end 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—and save on early fees.)

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.

Start your lease buyout online with Lease End.
We’ll handle the paperwork. You handle the driving.

GET STARTED WITH YOUR LICENSE PLATE

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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.

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