Back to Learn
Lease Buyout by State: Your Complete 2026 Guide
Published 4/11/26
statesalabamaalaskaarizonaarkansascaliforniacoloradoconnecticutdelawarefloridageorgiahawaiiidahoillinoisindianaiowakansaskentuckylouisianamainemarylandmassachusettsmichiganminnesotamississippimissourimontananebraskanevadanew hampshirenew jerseynorth carolinanew yorknew mexiconorth dakotatennesseeoklahomatexasutahvermontvirginiawashingtonwest virginiawisconsinwyomingwashington dcohiooregonpennsylvaniarhode islandsouth dakotasouth carolina
TL;DR (4-minute read): Whether a lease buyout is worth it depends a lot on where you live — your state affects taxes, financing rates, and even what your car is worth on the open market. This guide covers all 50 states plus D.C., with state-specific breakdowns built on real transaction data.
Your lease is ending soon, and honestly, a lot of people in your situation don't realize what they're sitting on.
According to Lease End's 2026 Annual Lease Buyout Report, the average driver at lease-end has roughly $5,500 in combined equity and avoided fees in their vehicle. Most of them turn the car in anyway...either because they don't know the number exists, or because they assume the dealership will handle it fairly.
(They will. Just not in your favor.)
A lease buyout is when you purchase your leased vehicle at the end of your lease term instead of returning it. You pay the residual value (the bulk of the purchase price written into your original lease agreement) plus taxes, title fees, and registration.
And FYI- most drivers finance a lease buyout with an auto loan rather than paying cash.
Whether that makes sense for you comes down to a few things, and one of them is your state. Sales tax rates, local vehicle markets, financing rates, and DMV processes all vary. This guide covers all 50 states plus D.C.
Click your state in the "by state" section below for the full breakdown:
Jump to Your State
Why Your State Changes the Math
The buyout decision isn't just about your car: it's about where your car lives. Here's what actually varies by state.
Sales tax
Most states treat a lease buyout as a new vehicle sale, which means you owe sales tax on the residual value at closing. A few states have no sales tax at all. On a $30,000 vehicle, that's potentially $1,500–$2,500 you either pay or don't, depending on where you live. More on that below.
Your local vehicle market
Texas is loaded with Ram 1500s and Toyota Tundras. California skews toward EVs and luxury crossovers. The Northeast runs compact. What's in demand in your market affects what used vehicles sell for — which affects the equity gap between your residual value and your car's actual worth.
Mileage patterns
Drivers in rural states like Maine and Arkansas put way more miles on their leases than the national average. At 10–30 cents per mile in mileage penalties, going 5,000 miles over your lease agreement's cap means $500–$1,500 in potential fees at turn-in. A buyout eliminates that number entirely.
Manufacturer restrictions
Not every automaker allows a third-party buyout — where you sell the leased vehicle to a dealer or private buyer instead of purchasing it yourself. Honda, Toyota, and Kia commonly restrict this. Knowing your options before your lease expiration matters more than people realize.
Financing rates
APRs vary by state based on regional lender competition and local credit profiles. According to Lease End's 2025 transaction data, the spread between the lowest-APR state (Idaho, at 7.96%) and the highest (Oklahoma, at 11.29%) translates to more than $3,000 in additional interest on a typical buyout loan. That's a real difference.
What Lease End's 2026 Buyout Report Actually Shows
We analyzed 19,287 completed lease buyout transactions from 2025.
Here's the short version of what we found.
The savings over a new lease are real
Based on Lease End's 2025 transaction data, the average lease buyout loan payment was $563/month — versus $659/month for a new lease on a comparable vehicle.
- That's $100/month, $1,200/year, just from not signing a new lease agreement.
- (Before you even factor in equity!)
Most drivers have more equity than they think
Across the top 10 most popular buyout models in 2025, average equity ranged from $2,397 (Jeep Wrangler) to $7,886 (Honda CR-V).
- The Honda CR-V, Civic, and Accord all cleared $6,700 in average equity.
- In total, Lease End customers collectively captured $73 million in savings in 2025 — averaging about $5,500 per driver between equity captured and mileage fees avoided.
Mileage overages push a lot of people over the edge
According to Lease End data, the average driver at lease-end in 2025 had logged 36,954 miles. That's 954 over the standard 36,000-mile cap.
- At 10–30 cents per mile in overage charges, that's up to $300 in fees at turn-in for a typical driver.
- Jeep Wrangler lessees averaged 44,740 miles...8,740 over the limit, translating to about $2,622 in potential mileage penalties that a buyout would erase.
The Ram 1500 is now the most bought-out vehicle in America
It overtook the Honda Civic in 2025, with the Jeep Wrangler moving to second. Trucks and rugged SUVs hold their value well — which is exactly why buying them out at a residual set two or three years ago makes so much sense right now.
Buyers are getting younger
The average age of a Lease End customer dropped to 47 in 2025, down from 50 in 2022 — the youngest on record.
- Millennials and Gen Z now account for 47% of all buyouts. Younger buyers are running the numbers faster than the conventional wisdom would suggest. (Honestly, that surprised me too.)
Financing is the most favorable it's been in a couple of years
Average APR across all credit profiles started 2025 at 9.49% and ended at 9.09%.
- Early 2026 is tracking at 9.03%.
- Drivers with strong credit (740+) are averaging around 6.6%.
Top states by per-capita buyout rate
New Jersey, New Hampshire, Vermont, Rhode Island, Connecticut — smaller Northeastern states punch well above their weight, driven by high lease market penetration and competitive regional lending.
Top states by total volume
California, New York, New Jersey, Florida, Texas — roughly tracks with population.
Not sure where your car stands?
Use the
for a quick read on your equity position, or estimate your monthly payment with the
before you commit to anything.
The States Where Buying Out Costs the Least: No Sales Tax
Five states charge no state-level sales tax on vehicle purchases:
- Oregon,
- Montana,
- New Hampshire,
- Delaware, and
- Alaska.
For a driver buying out a $30,000 vehicle in a state with a 7% tax rate, that's $2,100 they're paying that a driver in Montana or Oregon is not.
Doesn't make a buyout a bad idea in a high-tax state — the equity you're capturing almost always outweighs it — but it's a real line item worth knowing before you close.
A couple of nuances worth flagging
Alaska has no statewide sales tax, but some municipalities levy their own local rates, so drivers in Anchorage or Juneau may still see a small charge.
And even in zero-tax states, you'll pay title fees and registration — those are universal.
High-tax states to keep in mind
California runs 7.25%+ at the base rate.
Texas is 6.25%, and there's an added wrinkle...the lease buyout is treated as a brand-new taxable transaction even though the leasing company already effectively paid tax when it purchased the vehicle.
So you're essentially paying tax twice on the same car. It's a known issue in Texas, and we cover it in the Texas lease buyout guide.
New York's combined state and local rate often pushes past 8%.
Should You Buy Out Your Lease or Keep Leasing?
This comes up a lot, and I want to give you the honest version: not one that's going to unconditionally push you one direction.
The case for continuing to lease
If you genuinely want a new car every two or three years, lease cycling works.
- You're always covered by warranty,
- you're not on the hook for major repairs, and
- your payments stay predictable.
- If you put low miles on your vehicles and your needs change often, rolling into a new lease at the end of your lease term makes legitimate sense.
The case for buying out
The math has shifted.
When your car was leased, the manufacturer locked in a residual value — their projection of what the car would be worth at lease-end. Those residuals have been running low. Used vehicle values held up better than expected post-pandemic, and new car prices stayed elevated.
The result: a lot of drivers right now are sitting on a car worth meaningfully more than what they'd pay to buy it out.
Beyond equity, there's a simpler case. You already know this car. You know its history, its maintenance record, its quirks — because you're the one who drove it. You don't need a salesperson.
You're not walking into a dealership where average new vehicle prices are sitting around $50,000. And according to Lease End's 2025 data, your monthly payment at buyout ($563 on average) is going to be lower than what you'd pay on a new lease for a comparable car ($659 on average). So you're already ahead before counting the equity.
The state angle
In states with low average APRs and no sales tax — Idaho, New Hampshire, Delaware, Montana, Oregon — the ownership math tilts even further in your favor. In higher-tax or higher-average-APR states, the equity cushion typically still compensates, but running your actual numbers is smarter than assuming.
Where this all lands
A buyout isn't the right move for everyone.
If you're committed to always driving new, leasing has a real case, and we're not here to talk anyone out of that.
But for anyone who isn't completely sold on the leasing cycle? Anyone who's been in the same car for three years, put on more miles than planned, or just doesn't want to deal with the new-car market right now — a buyout is almost always the stronger financial call.
The lease-return path leads directly to a dealership and a higher monthly payment on a car you don't own yet. A buyout leads to owning something.
At some point the merry-go-round has to stop. A buyout is one reasonable way to step off.
Lease Buyout Guide by State
TopEach guide below is built on real Lease End transaction data — actual equity numbers, actual APRs, actual vehicles people are buying out. Not projections.
If your state is marked coming soon, check back — we're publishing all 51 guides throughout 2026.
A
ALABAMA: Alabama Lease Buyouts Strong equity, significant mileage overages, and a vehicle mix that holds value well. Alabama drivers who buy out are typically getting a good deal.
ALASKA: Alaska Lease Buyouts Structural factors — remote geography, high vehicle replacement costs, limited local inventory — push buyout equity above the national average. Among the strongest equity states in our dataset.
ARIZONA: Arizona Lease Buyouts Nearly $1,000 in median equity, below-average financing rates, and a Sun Belt market where demand for used vehicles stays elevated. The case for buying out is solid here.
ARKANSAS: Arkansas Lease Buyouts Arkansas drivers put more miles on their leases than almost any other state — well above standard limits. That alone can make a buyout the financially obvious move.
C
CALIFORNIA: California Lease Buyouts The typical California lessee is buying a vehicle worth roughly $1,000 more than the residual. High vehicle values and a massive used car market make this a competitive space. Also: California's tax rules on EVs and hybrids have unique implications.
COLORADO: Colorado Lease Buyouts Favorable financing rates, a payment that often comes in below a new-lease equivalent, and a vehicle mix suited to the Rocky Mountain market. The financial case for buying out is real.
CONNECTICUT: Connecticut Lease Buyouts One of the higher-cost states in the Northeast. Covers what you need to know about the tax structure, the process, and whether the numbers work for Connecticut drivers.
D
DELAWARE: Delaware Lease Buyouts Exceptional average credit, favorable rates, low payments, and lease equity.
WASHINGTON, D.C.: Washington, D.C. Lease Buyouts (coming soon)
F
FLORIDA: Florida Lease Buyouts A buyout makes the most sense when your car's market value exceeds the residual — which, in Florida's active used vehicle market, happens often. One of our highest-volume states.
G
GEORGIA: Georgia Lease Buyouts With new vehicle prices still elevated, Georgia drivers who hang onto their leased vehicles are avoiding a pricey replacement market. Here's how the numbers shake out.
H
HAWAII: Hawaii Lease Buyouts Leasing and buying out work differently in Hawaii than on the mainland. Island geography caps resale values, shipping costs affect pricing, and the vehicle mix is unlike any other state.
I
IDAHO: Idaho Lease Buyouts The lowest average APR in Lease End's dataset at 7.96%, combined with strong equity and straightforward title transfer. Idaho is one of the cleaner buyout states in the country.
ILLINOIS Illinois Lease Buyouts One of the most active lease buyout markets in the U.S. With more than $500 in average equity, Illinois drivers are clearly seeing the value in buying out.
INDIANA: Indiana Lease Buyouts Indiana drivers lean toward vehicles built to be kept: Ram trucks, Wranglers, Honda models, and Kias.
IOWA: Iowa Lease Buyouts This guide walks through how a lease buyout works, what Iowa's data looks like, and what to pay attention to before you decide.
K
KANSAS: Kansas Lease Buyouts Kansas drivers run practical, versatile vehicles that earn their keep across farm roads, suburban commutes, and long Interstate stretches.
KENTUCKY: Kentucky Lease Buyouts No vehicle leads any state's lease buyout list quite like the Ram 1500 leads Kentucky's in a state where trucks aren't a lifestyle accessory—they're a working instrument.
L
LOUISIANA: Louisiana Lease Buyouts Louisiana's buyers aren't one thing. Their lease buyout vehicle choices reflect that.
M
MAINE: Maine Lease Buyouts Maine drivers average more than 41,000 miles at lease-end — 5,000 over the standard limit. They still carry positive equity. This is one of the more interesting state stories in our dataset.
MARYLAND: Maryland Lease Buyouts Maryland drivers keep premium vehicles: the Lexus RX leads this list. This guide walks you through what a lease buyout actually involves, what it means financially, and how Lease End handles the parts most people dread.
MASSACHUSETTS: Massachusetts Lease Buyouts One of the most active lease markets in the country. Thousands of Massachusetts drivers have bought out in recent Lease End data. Here's what the numbers look like.
MICHIGAN: Michigan Lease Buyouts Michigan is the heart of the American auto industry, and the buyout picture here is nuanced. Most transactions are near break-even, with slightly negative median equity — but with average payments below the national average, it can still make financial sense.
MINNESOTA: Minnesota Lease Buyouts Minnesota drivers average nearly 40,000 miles at lease-end and carry positive equity. The cold-climate vehicle mix (SUVs, AWD crossovers) tends to hold value well.
MISSISSIPPI: Mississippi Lease Buyouts Handing a leased car back feels like the easy move, but it's not always the best. Six of the top ten most commonly bought-out vehicles in Mississippi in our dataset are Hondas.
MISSOURI: Missouri Lease Buyouts Most people return a leased car without running a single number. This is for Missouri drivers who'd rather know what they're walking away from.
MONTANA: Montana Lease Buyouts Montana has no state sales tax, some of the strongest equity numbers in this data series, and a vehicle list that makes complete sense for the terrain.
N
NEBRASKA: Nebraska Lease Buyouts (coming soon)
NEVADA: Nevada Lease Buyouts Nevada drivers are keeping Civics, Rams, Accords, and Wranglers. There's a rate story worth knowing here before you sign anything, too, and this guide covers it.
NEW HAMPSHIRE: New Hampshire Lease Buyouts New Hampshire drivers put serious miles on their leases and drive vehicles that hold their value. No state income tax and no general sales tax make the buyout process here notably clean.
NEW JERSEY: New Jersey Lease Buyouts The highest per-capita buyout rate in the country, according to Lease End data. If your Garden State lease is ending soon, this guide covers the process, the tax rules, and the numbers.
NEW MEXICO: New Mexico Lease Buyouts Highest average credit score in Lease End's dataset at 714, and a favorable equity picture to match. Buying out in New Mexico is often a strong move.
NEW YORK: New York Lease Buyouts Sky-high new car prices, a dense used vehicle market, and a large population of lessees make New York one of the most active lease buyout markets in the country.
NORTH CAROLINA: North Carolina Lease Buyouts North Carolina drivers carry nearly $1,800 in median equity — among the higher figures in our dataset — and finance at rates meaningfully below the national average.
NORTH DAKOTA: North Dakota Lease Buyouts (coming soon)
O
OHIO: Ohio Lease Buyouts With new cars averaging $50,000, Ohio lessees have been making the smart call: buying out their leases, pocketing the equity, and staying out of the new-car market.
OKLAHOMA: Oklahoma Lease Buyouts If you’re in Oklahoma and nearing the end of your lease, take a minute to evaluate your buyout option. You may already be sitting on value—and the right move may be to keep it.
OREGON: Oregon Lease Buyouts This guide walks through what a buyout means for you financially, what Oregon's no-tax status saves you, and how the process works from start to finish.
P
PENNSYLVANIA: Pennsylvania Lease Buyouts Thousands of Pennsylvania drivers have bought out their leases in recent Lease End data. The average lessee locks in over $1,000 in equity at buyout.
R
RHODE ISLAND: Rhode Island Lease Buyouts Rhode Island ranks in the top five nationally for per-capita lease buyout rate. Small state, strong buyout market.
S
SOUTH CAROLINA: South Carolina Lease Buyouts When your lease ends, someone is going to make a financial decision about your car. It might as well be you. We walk you through the ins and outs of a lease buyout in SC specifically.
SOUTH DAKORA: South Dakota Lease Buyouts (coming soon)
T
TENNESSEE: Tennessee Lease Buyouts Most people hand the keys back at lease-end without running a single number. This is for Tennessee drivers who'd rather know what they're walking away from first.
TEXAS: Texas Lease Buyouts Everything's bigger in Texas — including the number of trucks and SUVs people are buying out. Average equity of $1,466, a vehicle mix that holds value well, and a tax quirk that's worth understanding before you sign anything.
U
UTAH: Utah Lease Buyouts Based on Lease End data, buying out a lease in Utah is often the most cost-effective option. Here's what the numbers look like and how the process works.
V
VERMONT: Vermont Lease Buyouts Per capita, Vermont drivers are buying out their leases at rates that rival much larger suburban markets. High vehicle utility in a rural state makes the buyout case strong.
VIRGINIA: Virginia Lease Buyouts Virginia drivers carry some of the highest equity in our entire dataset, alongside some of the most favorable financing rates. One of the stronger buyout markets in the country.
W
WASHINGTON: Washington State Lease Buyouts Above-average incomes, above-average credit scores, and below-national-average financing rates. The data makes a solid case for buying out in Washington.
WEST VIRGINIA: West Virginia Lease Buyouts (coming soon)
WISCONSIN: Wisconsin Lease Buyouts The dealership's plan for your lease-end is already ready. The question is whether yours is. Want to keep your car in Wisconsin? We'll walk you through how.
WYOMING: Wyoming Lease Buyouts (coming soon)
DMV, Title Transfer, and Registration: What Varies by State
Nobody loves this part of the conversation, but it comes up after closing, so let's get ahead of it.
After you buy your car, the title needs to transfer from the leasing company to you — or to your new lender, until you pay the loan off. Every state has its own process, timeline, and fee structure. Some are straightforward. A few are genuinely annoying.
The headline: Lease End handles title, registration, and all associated paperwork on your behalf, no matter what state you're in. You don't have to figure out your county DMV, track down the right forms, or navigate your leasing company's payoff process. That's our job.
What actually varies
- Timelines. Texas requires title transfer and tax payment within 30 calendar days of purchase — miss it and you're paying penalties. Other states give you more runway. Some process titles centrally; others route everything through county-level offices, which adds variability.
- Paperwork complexity. Louisiana is one of the more involved states for title work, especially when an out-of-state title is in play. California has its own system. Some states require notarized documents; a few require an in-person step that can't be avoided.
- Registration fees. These vary a lot. Some states charge a flat fee. Others — including California, Colorado, and Minnesota — calculate fees based on the vehicle's value or age. If you're buying out a newer, higher-value vehicle, that matters. Each state guide covers the specifics.
- Emissions and inspections. States in the Northeast and California tie annual registration to emissions testing. A lease buyout typically doesn't trigger an immediate inspection, but you'll be on the hook at your first renewal. Worth knowing upfront.
Timelines and communication
None of this should stop you from moving forward — it's paperwork, and it gets handled. The goal is no surprises after closing.
And when you work with Lease End, the process is the same whether you're in Florida or Idaho. Lease End handles the payoff to the leasing company, the title transfer, and registration paperwork entirely online. If certain elements are required of you, everything will be clearly communicated to you.
The whole thing typically wraps up in a few weeks.
Frequently Asked Questions
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 term. You pay the residual value — the price locked into your lease agreement — plus applicable taxes, title fees, and registration costs. Most drivers finance the purchase with an auto loan.
Does it make sense to buy out my lease in any state?
The buyout math works in every state, but the specifics vary.
- States with no sales tax (Oregon, Montana, New Hampshire, Delaware, Alaska) have a lower cost to close.
- States with low average APRs like Idaho and Colorado make financing more favorable on average based on lenders based there.
- States with high mileage usage — like Maine and Arkansas — often see the strongest case for buying out, because mileage penalties at turn-in are real money.
Do I have to pay sales tax when I buy out my lease?
In most states, yes — the buyout is treated as a new taxable vehicle sale, and you owe sales tax on the residual value. Five states have no state-level sales tax: Oregon, Montana, New Hampshire, Delaware, and Alaska. Even in high-tax states, the equity you're capturing usually outweighs the tax cost.
What if my car is worth less than the residual?
If the vehicle's market value is below the residual, you have negative equity — meaning you'd overpay to buy it out. In that case, turning the car in at lease-end and letting the leasing company absorb the loss is often the smarter move. We'll tell you straight if the numbers don't work in your favor.
Can I sell my leased car to someone else instead of buying it out?
Sometimes. This is called a third-party buyout — where you sell the leased vehicle directly to a dealer or private buyer. Not every manufacturer allows it. Honda, Toyota, and Kia commonly restrict third-party sales, meaning you'd need to buy the car out yourself first before reselling. Your lease agreement spells out your options.
We can actually help you with this, too. Just say you want to sell your car in the form below and we'll connect you with a buyer.
Does Lease End work in my state?
Yes. Lease End handles lease buyouts in all 50 states plus D.C. Every state guide in this hub is built on real transaction data from drivers in that state.
Ready to See What Your Car Is Worth?
Enter your license plate or VIN below. Takes about two minutes, and there's no commitment.
All data referenced in this guide is sourced from Lease End's 2026 Annual Lease Buyout Report, covering 19,287 completed transactions from January 1–December 31, 2025, with additional 2026 year-to-date insights. Equity figures, APRs, and vehicle values reflect real completed transactions and are updated periodically. According to Lease End's proprietary transaction dataset.