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How to Buy Out a Car Lease: Step-by-Step
Published 11/10/25
Estimated Read Time: 3 minutes
TL;DR: Love your leased car? Lease End makes it easy to keep it—with competitive financing, no dealership hassle, and average payments far below buying new. Skip the fees, keep your keys, and drive on your terms.
Love your leased car and not ready to let it go? A lease buyout might be the smartest move you make.
If you’re at the end of your lease—or even somewhere in the middle—and thinking about buying out your leased vehicle, you’re not alone. More drivers than ever are choosing to keep the cars they know, love, and trust, instead of jumping into a brand-new lease or high-priced vehicle.
At Lease End, we make buying out your lease easier, faster, and way less confusing. Here’s everything you need to know about how to buy out your car lease, plus expert tips to make sure it’s the right move for you.
What Is a Lease Buyout?
A lease buyout is when you purchase your leased vehicle instead of returning it at the end of the lease. You’re essentially “buying it off the lot” — only it’s a car you’ve already been driving.
You can either:
Buy it at the end of the lease (a lease-end buyout), or
Buy it early (an early lease buyout), depending on the terms in your lease contract.
In most cases, your lease agreement will include a residual value, or the predetermined price you’ll pay if you choose to buy the car. That value is usually based on the car’s projected depreciation from the time you first leased it.
Why Buy Out Your Lease?
A lease buyout can be a smart move if:
- You love your car and want to keep driving it
- You’re over your mileage limit and want to avoid penalties
- You’ve taken great care of the car and know its history
- The current market value is higher than your lease buyout price
- You want to stop leasing and own your vehicle outright
Bonus: Buying out your lease means skipping those end-of-lease inspection surprises and avoiding turn-in fees that can add up fast.
How to Buy Out Your Car Lease in 5 Simple Steps
Here’s a step-by-step guide to buying out your lease—with tips to make the process smoother:
1. Check Your Lease Terms
- Pull out your lease contract and look for:The residual value
- Whether you have an early buyout option
- Any purchase option fees
- Any fine print on taxes, registration, or excess wear charges
Don’t have your lease handy? Contact your leasing company—they’re required to provide this info. (Or, if you're working with Lease End, we do this for you.)
2. Know Your Car’s Value
Use sites like KBB, Edmunds, or CARFAX to check the car’s current market value. Then compare it to your buyout price.
- If your car is worth more than your buyout price? Great—you have positive equity.
- If it’s worth less? You may want to rethink buying it out or negotiate.
Tip: Many leased vehicles—especially in the past few years—have appreciated due to low inventory and high new car prices. That means more people have lease equity than ever before.
3. Decide on Financing
Unless you’re paying cash, you’ll need an auto loan. Lease buyout loans work a lot like traditional used car loans.
You can get a loan from:
- Your bank or credit union
- Online lenders
- Or better yet, through Lease End, where we handle the entire buyout and financing process in one place—DMV paperwork included.
Pro tip: Shop around for the best rate, especially if your credit has improved since you first leased the car.
4. Complete the Paperwork and Take Ownership
Once financing is in place, you’ll:
- Sign a bill of sale
- Register the car in your name
- Pay taxes and fees
- And finally, get the title transferred
With Lease End, we do all of that online, including the DMV process—so you can skip the office visit and get your title fast.
When Does a Lease Buyout Make Sense?
Buying out your lease makes the most sense if:
- You’ve kept the car in good shape
- You want to stop leasing and start building equity
- Your lease-end fees would be high
- You can buy the car for less than what it would cost to replace it
A lease buyout might not make sense if:
- You prefer leasing
- The residual value is way higher than the car is worth
- You want to lease something new with updated features
What About Early Lease Buyouts?
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.
Learn more in our guide: Early Lease Buyout vs. End-of-Term Lease Buyout
Costs to be Aware of
Even if the numbers look good, don’t forget to factor in:
- Sales tax, which varies depending on your states
- DMV fees which may include titling, documentation, or other logistics
- Loan interest if you're financing
- VSC and GAP insurance
Many people forget these and end up surprised at the total lease buyout cost.
FAQs About Buying Out a Car Lease
Can I buy out my lease with bad credit?
Yes, but your interest rate may be higher. At Lease End, we work with lenders who consider credit profiles as low as 520.
What happens if I go over my mileage limit?
If you return the car, you’ll pay penalties. But if you buy it out, you won’t be charged for excess miles.
Can I trade in my leased car and keep the equity?
Absolutely. If your lease has equity, you can use it as a down payment on a new car—or buy your car and refinance into a loan with better terms.
Final Thoughts: Is a Lease Buyout Right for You?
If you love your leased car, have taken care of it, and the numbers make sense, a lease buyout can be a no-brainer. You get to skip the hassle of car shopping, avoid unexpected fees, and walk away with a vehicle you already trust—plus the added perk of ownership.
Let Lease End make the process fast and easy, from buyout paperwork to title transfer and financing—all online.
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
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(844) 902-2842