Lease Buyout: Should You Buy or Move On?

Your lease is ending soon, and you’re staring down a decision that could either save you thousands or cost you just as much. Should you buy out your leased vehicle, or is it smarter to walk away and lease something new?

Most people guess. We show you the numbers.

Cartelligent’s Lease Buyout Package gives you a complete side-by-side comparison of both options—buying out your current lease versus leasing a new car—so you can make the choice that actually saves you money. No guesswork, no regrets, just clear financial clarity.

Here’s everything you need to know to make the smartest decision about your lease-end situation.

What Is a Lease Buyout?

When you lease a vehicle, your contract includes a predetermined buyout price based on the residual value—the amount your leasing company estimated the vehicle would be worth at the end of your lease term. This figure was calculated at the very beginning of your lease by analyzing factors like the vehicle’s MSRP, expected depreciation, lease length, and projected mileage.

Here’s what makes this interesting: your buyout price was locked in years ago, but the actual market value of your car today might be completely different. That gap between what you can buy it for and what it’s actually worth is where smart decisions happen.

You typically have two buyout options:

• End-of-lease buyout: Purchasing the vehicle when your lease term expires by paying the residual value plus any applicable fees and taxes 
• Early buyout: Buying the car before your lease term ends, which typically includes the residual value plus remaining lease payments and possible early termination fees

When Buying Out Your Lease Makes Financial Sense

The Market Value Exceeds Your Buyout Price

This is the most compelling reason to consider purchasing your leased vehicle. If your car’s current market value is significantly higher than your buyout price, you’ve stumbled into equity.

For example, if your buyout price is $22,000 but similar vehicles are selling for $26,000, you’re looking at roughly $4,000 in instant equity. This situation became common during recent market disruptions when used car values soared above expected residual values.

You’ve Stayed Well Under Your Mileage Limit

Leases come with mileage restrictions, typically 10,000 to 15,000 miles per year. If you’ve been driving far less than your allotted mileage, your vehicle is likely in better condition than the residual value assumes. The wear and tear factored into your buyout price doesn’t reflect reality, making the purchase more attractive.

The Vehicle Has Been Exceptionally Reliable

You know this car’s complete history because you’ve been the only driver. If it’s been trouble-free and you’ve maintained it meticulously, buying out eliminates the uncertainty that comes with any used vehicle purchase. You’re avoiding the risk of inheriting someone else’s problems.

You’re Facing Excessive Wear-and-Tear Charges

When you return a leased vehicle, the dealership conducts a thorough inspection looking for damage beyond normal wear and tear. Those small dents, scratches on the bumper, or interior stains you barely notice? They can add up to significant charges—sometimes reaching into the thousands of dollars. 

What counts as “excessive” varies by leasing company, but common charges include paint chips larger than a half-inch, any interior tears or stains, rim damage, windshield cracks, and worn tires with less than 4/32-inch tread remaining. Some companies also charge disposition fees ranging from $300 to $500 just for processing your return. Check out our post on How to Handle Damage When Your Car Lease is Ending for examples and more details.

Here’s the smart move: if you’re looking at substantial wear-and-tear fees, buying out your lease eliminates these charges entirely. You’re essentially choosing to keep a car you’ve already driven rather than paying someone else to fix it.

You Want to Avoid the Current New Car Market

Shopping for a new vehicle right now means navigating limited inventory, dealer markups, and higher interest rates. If you’re satisfied with your current car, buying it out lets you sidestep these market challenges entirely.

When You Should Walk Away from a Buyout

Your Buyout Price Is Above Market Value

Run a quick check on sites like Kelley Blue Book, Edmunds, or CarGurus to see what your vehicle is actually worth. If your buyout price is $3,000 or more above market value, you’re essentially paying a premium for a car you could purchase cheaper elsewhere (or lease something new for less).

Major Repairs Are on the Horizon

If your vehicle is approaching 60,000 miles or more, consider what maintenance lies ahead. Timing belts, transmission services, and other expensive repairs might be looming. Factor these costs into your decision—they can quickly erode any perceived savings.

Your Needs Have Changed

Maybe you’ve welcomed a new baby and need more space, or your commute has shifted and you now need better fuel economy. Life changes, and sometimes the vehicle that worked perfectly two years ago no longer fits your current situation.

You’re Drawn to Newer Technology

Today’s vehicles come with dramatically improved safety features, better fuel efficiency, and enhanced technology. If your leased car lacks essential features like adaptive cruise control, blind-spot monitoring, or modern infotainment, you might find more value in a newer model.

Financing Costs Are Prohibitive

Buying out your lease usually requires financing unless you’re paying cash. If current interest rates are significantly higher than what you’d get on a new lease, run the numbers carefully. Sometimes the financing costs alone make buying out less attractive than leasing something new.

The Questions You Should Ask Before Deciding

What’s my total cost of ownership? Don’t just look at the buyout price. Factor in sales tax, registration, extended warranty options, and upcoming maintenance. Compare this total to the cost of leasing or buying a different vehicle.

How long do I plan to keep the car? Buying out makes more sense if you plan to drive the vehicle for at least three to four more years. If you’ll want something different in 18 months, the transaction costs might outweigh the benefits.

What’s my opportunity cost? The money you spend on a buyout can’t be used for other purposes. Is this the best use of your capital, or would you benefit more from investing it elsewhere and choosing a low-payment lease on a new vehicle?

Am I emotionally attached, or is this financially sound? It’s easy to form attachments to vehicles we’ve driven for years. Make sure your decision is based on numbers and practicality, not just sentiment.

How Cartelligent Can Help You Make the Right Choice

Here’s the truth: most people facing this decision either guess based on emotions or spend hours trying to figure out the math themselves. You deserve better than that.

Cartelligent’s Lease Buyout Package costs just $295, and it gives you something invaluable—absolute clarity on which path saves you the most money.

Here’s what makes our approach different: as an auto broker doing this for over 25 years we don’t just tell you whether to buy out your lease. We show you both paths forward with complete transparency and actual numbers.

When you work with us, we’ll provide a comprehensive comparison showing:

• The true cost of buying out your current lease, including the residual value, all applicable fees, taxes, registration costs, and financing terms
• The cost of leasing a new vehicle that meets your current needs, with all the latest safety features and technology
• A side-by-side analysis so you can see exactly which option puts you in the better financial position

This isn’t guesswork. You’ll see real monthly payments, total costs, and exactly what you’re getting either way. Some clients discover their buyout is a fantastic deal. Others realize leasing something new actually costs less and gets them a better car. Either way, you make the decision with confidence because you have the facts.

And here’s the best part: whether you choose to buy out your lease or lease something new, we help you get the best possible deal. It’s truly a win-win situation.

Our team handles all the paperwork, negotiates on your behalf with dealers and finance companies, and ensures you’re not leaving money on the table—regardless of which direction you choose. No pressure, no sales tactics, just honest guidance and expert execution.

Making Your Decision with Confidence

Buying out your lease may be a smart financial move, but it’s not automatic. The right choice depends on your specific situation: the numbers, your lifestyle, and your future plans.

Take time to gather the facts. And remember, you don’t have to navigate this decision alone.

Whether you’re leaning toward buying out your lease or exploring new options, having expert guidance ensures you’ll make the choice that truly serves your financial interests. The wrong decision could cost you thousands, but the right one—backed by solid analysis—can save you just as much.

Ready to find out which path makes the most sense for you? Connect with a Cartelligent advisor and we’ll run the numbers together to see if you buy or lease a car.