Back to Learn
Are EV Lease Buyouts the Missing Piece in Sustainable Driving?
Published 6/6/25
Estimated Read Time: 6 minutes
TL;DR: Data from Lease End shows that most drivers opt to return or trade in their leased EVs rather than buy them out with an auto loan, but an EV lease buyout can be a financially savvy choice. As EV tech improves and market conditions shift, more drivers may find that keeping their current EV is the smarter, greener move.
Every year we see a push toward sustainable living—plant-based diets, reusable everything, and of course, electric vehicles (EVs). But while the buzz around EVs is loud, the numbers behind what people actually do when their EV lease ends tell a different story.
Here at Lease End, we've helped more than 30,000 drivers buy out their leased vehicle with an auto loan rather than trade it back into the dealership for something new.
What we’ve seen with EVs may surprise you: despite all the media attention on EVs in general, EV lease buyouts are still rare.
EV Lease Buyouts: Still the Road Less Traveled
In 2024, EVs accounted for just 1% of all lease buyouts we facilitated. That’s right—even though EVs dominate the conversation around the future of mobility, the vast majority of drivers are still buying out gas-powered vehicles.
In fact, 94% of buyouts in 2024 were for conventional fuel vehicles, with hybrids and EVs making up just 6% combined (5% hybrids, 1% EVs).
As low as that percentage sounds, it's more than double the hybrid/EV buyout share we saw in 2023, which stood at just 2.5%.
The upward trend is real—and it’s poised to continue, especially now that Tesla has reversed its lease buyout ban as of November 2024.
So, why aren’t more people buying out their leased EVs—and should they be?
Let’s dig into the benefits and trade-offs of buying out your leased EV vs. trading it in for a new one.
The Case for Buying Out Your Leased EV or Hybrid
1. You Already Know the Car
Leasing an EV can be a bit of a learning curve. Maybe you discovered your ideal charging rhythm or figured out how to maximize your battery range in winter. If you love your EV and know exactly how to get the most out of it, buying it out means you get to keep the comfort and confidence you’ve built up.
2. Beat the Depreciation Game
EVs have historically depreciated faster than gas vehicles—largely due to fast-moving tech and uncertain resale values. Especially in this season’s economic climate with uncertainty surrounding tariffs, a vehicle’s future value can be hard to pin down.
But here’s the thing: lease buyout values are based on your original lease contract, which likely underestimated the EV’s actual value in today’s market.
Translation? You might be sitting on a great deal.
In fact, with rising prices for new EVs and fewer incentives than in years past, buying out your current EV might cost you less than leasing or purchasing a new one—especially if your buyout price was locked in before inflation or supply chain shifts.
3. Sustainability Wins
Buying out your EV is a sustainable choice.
Rather than entering another manufacturing cycle by leasing a new car, you extend the life of a vehicle already on the road — reducing the immediate demand for the raw materials (like lithium and cobalt) used in new EV production.
Granted, even EVs and hybrids are not unilaterally sustainable. There’s a lot of innovation still needed to compensate for where EVs fall short, especially in carbon emissions during production.
Still, EVs definitively produce fewer emissions over time than gas-powered vehicles. And in sustainability efforts, progress doesn’t need to equal perfection.
The Case for Leasing a New EV Instead
1. New Tech, New Perks
The EV space moves fast. Maybe your current lease didn’t include wireless Apple CarPlay or has a shorter battery range than what’s now standard. A new lease means new features, better range, faster charging, and in some cases, a better tax incentive package depending on where you live (and the unknown future landscape of EV incentives in general with the new administration).
2. Battery Longevity Concerns
One of the biggest unknowns in EV buyouts is long-term battery performance. Most EVs lose 2–3% of battery capacity per year and replacing a battery outside warranty can be pricey.
Leasing again lets you sidestep that uncertainty.
3. You Want Flexibility
Maybe you’re still not 100% sold on the EV lifestyle—the charging infrastructure near you is iffy, or you’re planning a move that could change your driving habits. A new lease keeps your options open.
And if you end up being upside down on your lease, (ie have “negative equity”) where you owe more on your lease than the vehicle’s worth? Simply return it to the dealership at the lease’s end and walk away.
The Tesla Effect: A Turning Point?
Up until late 2024, Tesla didn’t allow lease buyouts. That alone sidelined a huge portion of potential EV buyouts.
But with the reversal of their buyout moratorium in November 2024, things are changing.
Many Tesla drivers now have the option to buy out a Model 3, Model Y, Model S, or Cybertruck—and for drivers who leased in 2020 or 2021, the residual values could be a bargain compared to today’s used EV prices.
We expect this policy shift to significantly boost EV buyout activity in 2025, and Earth Day could be the perfect moment for drivers to reconsider whether keeping their EV is not only a smart financial move—but a sustainable one.
What to Ask Yourself Before Buying Out Your EV
If you’re at the end of your lease and trying to decide whether to buy or walk away, here are a few things to consider:
- Do I love this car? If yes, that’s already a strong reason to consider keeping it.
- What’s the buyout price? Compare it to used EV prices online to see if you’re getting a deal.
- Is the battery still under warranty? Most EVs come with 8-year/100,000-mile battery coverage.
- Am I planning to keep the car long-term? If so, buying might make more sense than leasing again.
- Am I ready for another lease cycle? Constantly swapping cars may feel fresh—or like a financial merry-go-round.
Final Thoughts: The Sustainable Sweet Spot
EVs are a great step toward a cleaner future, but sustainability isn’t just about switching from gas to electric—it’s about making the most of what you already have. And that’s where lease buyouts (for vehicles of any fuel type) come in.
By buying out your vehicle, you give that vehicle a second life while avoiding the carbon footprint of manufacturing a new one. Plus, you might be scoring a financial win if your buyout price is lower than today’s resale value.
Answer just two questions in our Automatic AI monthly payment calculator to see what your new monthly payment would be for buying out your leased EV with an auto loan.
About the author
Rebecca Graham
With over a decade of professional writing experience, Rebecca transforms complex concepts and data into clear, engaging content. When she's not honing Lease End's organic growth strategy, she's fanning the flames of her Wicked obsession, crafting custom candles, or walking Utah’s mountain trails. Connect with Rebecca on LinkedIn.
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