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When to Buy Out a Car Lease: The Smart Driver’s Guide
Published 6/17/25
Read Time: 6-7 minutes
TL;DR: A car lease buyout lets you purchase your leased vehicle instead of returning it. The best time to buy out your lease? Near the end of your contract or early if it saves you money. Lease End makes the process simple by securing the best loan rates and handling the paperwork—without the dealership runaround.
Your lease is ending, and now you have a choice: hand back the keys or make the car officially yours?
The answer depends on a few key factors—your car’s value, your mileage, and your financial situation. Let’s break it down.
When Buying Out Your Lease Makes Sense
Your Car Is Worth More Than the Buyout Price
If your car’s current market value is higher than its residual value, you’re looking at instant savings. This happens when:
- Used car prices are up (which happens more often than you’d think).
- The leasing company underestimated how much your car would be worth at lease-end.
- You’ve taken excellent care of your car, keeping mileage and wear low.
💡 Pro Tip: Use tools like Kelley Blue Book or Edmunds to check what your car is selling for compared to its buyout price. If it’s worth more, buying it could be a steal.
You’ve Exceeded Your Mileage Limit
Most leases come with 12,000–15,000 miles per year. Go over that, and you could be looking at fees between $0.10 to $0.30 per extra mile.
For example: If you’re 10,000 miles over and your fee is $0.25 per mile, that’s $2,500 in mileage overage fees! Buying out your lease avoids this entirely.
You Want to Avoid Wear & Tear Fees
Scratches? Dents? A coffee stain that refuses to go away? Lease returns require an inspection, and leasing companies love charging for excessive wear. If your car isn’t in pristine condition, buying it out might be cheaper than paying the penalties.
You Love Your Car & Don’t Want the Hassle of a New One
Finding a new car can be expensive and time-consuming. Instead of dealing with higher lease payments or rising interest rates on new loans, you can keep the car you already love—no surprises, no dealership upsells.
When Buying Out Your Lease Might Not Make Sense
The Buyout Price Is Higher Than the Market Value
If your buyout price is higher than what the same car sells for used, it might not be the best deal. Run the numbers and see if a better deal is out there.
Your Car Has Major Issues
If your car is out of warranty or has expensive repairs coming up, it might be time to walk away and start fresh with a different vehicle.
You’re Craving Something New
Sometimes, it’s just time for a change! If you’ve been eyeing a new model or need a different vehicle type, returning your lease and starting over may be a better choice.
End-of-Lease Buyout vs. Early Lease Buyout
| End-of-Lease Buyout | Early Lease Buyout | |
| Timing | At the end of your lease term | Before the lease officially ends |
| Best For | Avoiding fees & keeping a great car | Escaping high monthly payments or mileage penalties |
| Potential Savings | Market value vs. buyout price | Lower payments if market value is high |
| Loan Process | Standard lease buyout loan | May include remaining lease payments |
💡 Pro Tip: If you’re considering an early buyout, check for penalties or extra fees—sometimes, it’s better to wait until the lease ends.
How to Buy Out Your Lease (Without the Headaches)
If you decide to keep your leased car, here’s how to do it:
- Check Your Lease Agreement – Look for the buyout price (aka residual value) listed in your contract.
- Compare Market Value – Use sites like Kelley Blue Book or Edmunds to check what your car is worth.
- Secure Financing – Unless you’re paying cash, you’ll need a lease buyout loan. Lease End can find the best loan rates in minutes.
- Avoid the DMV Hassle – Lease End handles all the paperwork, including title transfers and registration.
Final Thoughts: Is a Lease Buyout Right for You?
If your car’s value is higher than the buyout price, or you’re facing high mileage or wear-and-tear fees, buying out your lease could save you thousands. And with Lease End, you can secure the best loan, avoid the DMV, and skip the dealership runaround.
Want to keep your car? Let Lease End handle the hard part.
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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