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What is a Lease Buyout Loan?
Published 9/25/25
Estimated Read Time: 6 minutes
TL;DR: A lease buyout loan is a way to finance the purchase of your leased car at the end (or sometimes during) your lease. Instead of turning the car back in, you take out a loan to cover the buyout price, taxes, and fees, and then make monthly payments—just like a traditional car loan. The big advantage? You get to keep the car you already know and love, often with equity built in.
So, what is a lease buyout loan exactly? Simply put, it’s a loan that helps you purchase your leased vehicle instead of returning it to the dealer. Your lender pays off the leasing company, and you repay the lender in monthly installments.
Your buyout price (also called the residual value) is predetermined in your lease contract. Add in sales tax, title, and registration fees, and you’ve got your total loan amount. For most people, financing makes this cost manageable—especially if you’re not ready to write a big check all at once.
Do Buyout Loans Have Higher Interest Rates?
A common question we hear is: do buyout loans have higher interest rates than other auto loans? The answer depends on your credit profile and the lender.
- For drivers with strong credit, buyout loans can be just as competitive as traditional auto loans.
- For drivers with average credit, rates may be slightly higher since the vehicle is already used.
- Lease End’s lending network spans the full credit gamut, so even if your score isn’t perfect, you still have access to lenders who understand lease buyouts.
The real cost saver here is equity. If your car’s current market value is higher than the buyout price, you’re instantly ahead—even if your loan rate is a bit higher.
How Much Money Goes to the Car When Lease to Own?
Here’s where things get interesting. With a lease buyout loan, almost all the money goes straight into ownership—not to a dealership, not to hidden fees.
- Residual value: The bulk of your loan covers the agreed-upon price in your lease contract.
- Taxes and fees: Sales tax, title, and registration are added on (varies by state).
- Convenience or doc fees: If applicable, Lease End charges a fee for handling everything from paperwork to DMV filings.
Unlike leasing, where monthly payments are essentially “rent,” your buyout loan builds ownership from day one.
What Are Lease End’s Approval Rates?
If you’re wondering what are Lease End’s approval rates?—they’re strong. We’ve already helped more than 33,000 drivers complete buyouts. Because we work with multiple lenders (big names like Ally, Capital One, and many credit unions), our approval odds are much higher than if you walk into a single bank.
And we don’t just throw you a rate and say “good luck.” We line up multiple offers so you can compare side by side and pick the best fit for your budget.
Benefits of a Lease Buyout Loan
Choosing a lease buyout loan has a few big advantages:
- Keep the car you love: You already know its quirks, mileage, and maintenance history.
- Avoid lease-end fees: No charges for excess wear, tear, or mileage.
- Build equity: If your car is worth more than the buyout price, you can resell later or trade in with equity.
- Skip dealership games: No pressure to lease again, no add-ons, no “mystery fees.”
Lease End makes it even easier by handling financing, paperwork, titling, and registration entirely online.
Final Thoughts: Should You Get a Lease Buyout Loan?
If you’re asking “what is a lease buyout loan?” the real question is: do you want to keep the car you already love, without the dealership hassle?
A lease buyout loan is your ticket to ownership. You’ll pay off your residual value, roll in the taxes and fees, and drive away knowing the car is truly yours. With Lease End, you can compare rates, secure financing, and get all the paperwork done without ever stepping foot in a dealership.
Ready to see your options? Enter your license plate or VIN into our Automatic AI calculator and get a personalized lease buyout loan estimate in minutes.
About the author
Adam Broud
Adam Broud is a writer and comedian based out of Salt Lake City, Utah. As a professional stand-up comedian with an MBA, his writing uniquely blends the worlds of business and comedy. Adam's writing for ads and comedy has appeared in places such as Buzzfeed, Vanity Fair, your television, and his mom's box of keepsakes. Feel free to review his writing from any of those places, but just know it's kinda weird if you choose his mom's house.
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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