Lease Buyout, New Lease, or New Purchase: Which Road Should You Take?

Quick Comparison: Lease Buyout vs. New Lease vs. New Purchase 🔎

Option 1: Lease Buyout

Pros:

• You already know the car. No test drives, no surprises.
• Could save money if your car’s market value is higher than your lease’s residual value.
• No mileage or wear-and-tear fees—you’re not returning the car!
• Keep the equity if your car is worth more than the buyout price.
• May qualify for a lower monthly payment than leasing a new car.

Cons:

• No new-car smell. For better or for worse, it smells like you.
• Out of warranty? You may be on the hook for repairs.
• You’re buying a used car, even if it’s been babied by you.

When to Buy Out:

• Your car’s market value is greater than your buyout price
• You’re way over your mileage cap
• You just really, really love your current car

Option 2: New Lease

Pros:

• Drive the latest model every few years.
• Manufacturer warranty typically covers the whole lease term.

Cons:

• Mileage limits (and $$$ penalties if you go over).
• No ownership or equity. You’re basically renting.
• Must return the car in good shape or face wear-and-tear fees.

When to Lease Again:

• You like new tech and safety features.
• You don’t drive a ton (or you’re good at pretending).
• You don’t want to deal with resale or long-term maintenance.

Option 3: Buy a New Car

Pros:

• It’s yours. Customize, road trip, eat fries in it—no judgment.
• No mileage restrictions. Drive it like you mean it.
• You build equity with each payment.

Cons:

• You take the depreciation hit—new cars lose up to 20% in value in year one.
• Big down payment required (usually).

When to Buy New:

• You’re ready for long-term commitment.
• You want a specific model or features you can’t lease.
• You drive a lot and want to avoid mileage penalties.

What’s the Right Move for You?

• Lease Buyout is great if your current car is a keeper, you’ve racked up miles, or it’s worth more than the buyout price. And hey, Lease End can help you do it without stepping foot in a dealership.
• New Lease is best for those who love driving something new, keep mileage low, and prefer predictable payments.
• Buying New is for long-haulers who want ownership, drive a lot, and aren’t afraid of a little commitment.

Final Thoughts: Don’t Make This Decision at the Dealership 😅

• Secure the best loan rate
• Handle DMV paperwork
• Avoid dealership pressure