How to Buy Out a Car Lease: Step-by-Step

Rebecca Graham

Published 7/21/25

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.

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. Negotiate (If Possible)

While most lease buyout prices are locked in, some dealerships will negotiate—especially if:

The car is hard to resell
You’re offering to buy early
You’re willing to finance through them

You can also ask for extras like:

Waived purchase fees
Discounted service packages
Special APR offers

5. 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:

The car has major mechanical issues
The residual value is way higher than the car is worth
You want to lease something new with updated features

Squiggly line leading to the dealership; straight line to Lease End

What About Early Lease Buyouts?

Yes, you can sometimes buy out your lease before the term ends—but not always.

Pros of an Early Buyout:

Avoid excess mileage or damage fees
Lock in the car before it gets re-appraised
Finance the buyout before interest rates go up

Cons:

May include early termination penalties
Could cost more than a lease-end buyout

Check with your lessor or reach out to Lease End to see if an early buyout is on the table.

Hidden Costs to Watch Out For

Even if the numbers look good, don’t forget to factor in:

Sales tax
DMV fees
Purchase option fees (usually $200–$500)
Loan interest if you're financing

Many people forget these and end up surprised at the final price.

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.

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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.

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