How to Buy Out a Lease the Smart Way (Without Overpaying)
"Buy this car and you’ll be the reason the neighbors peek through their curtains."
- Chase | Car deal dad joke writer | Not very good at it...
Week 16 – How to Buy Out a Lease the Smart Way (Without Overpaying)
Hey Deal guard nation, welcome to Week 16!
You’ve crushed 15 straight weeks of car buying strategy—and now it’s time to talk about lease buyouts.
If you’ve been leasing a car and you love it, you might be thinking: "Should I just buy it?"
Great question.
The answer is: Maybe.
It depends on the math, the timing, and your future plans. This week’s post will help you figure out if buying out your lease is a smart move—and how to do it right if you go for it.
Tactic #16: Know When—and How—to Buy Out Your Lease
Why This Matters
A lease buyout means you’re purchasing your current leased car instead of returning it.
It can be a great deal if:
The car’s buyout price is below market value
You’ve taken great care of it = Interior + Exterior + Mechanical
You want to avoid extra wear/tear or mileage fees
But it can also be a trap if:
The buyout price is too high for its condition
You can get a better deal on a similar car elsewhere
Let’s get into it.
Step-by-Step: How a Lease Buyout Works
Step 1: Check Your Lease Contract for the Buyout Price
Somewhere in your lease paperwork, you’ll find:
Residual Value – What the leasing company says your car is worth at lease-end (this becomes your buyout price)
Purchase Option Fee – Some leases add $300–$600 to buy it out
Add these together to see what it would cost to keep the car.
Step 2: Check the Market Value of Your Car
Use:
KBB.com (Kelley Blue Book)
Carvana / CarMax / Vroom for real-time offers
Open an excel sheet and or piece of paper and start tracking what websites say your car is worth
If your car’s market value is higher than the buyout price? You’ve got equity. That’s a win.
If it’s close, it still might make sense if you love the car and it’s in great shape.
If it’s worth less than the buyout? Probably better to walk away.
Step 3: Decide How to Pay for the Buyout
You’ve got three options:
Cash – Pay the full amount up front. Easiest and cheapest.
Finance – Get a car loan from your bank or credit union. Shop rates!
Dealership Buyout – Some dealers will do the buyout for you and handle the paperwork, but they may tack on extra fees.
Pro tip: Don’t automatically finance through the leasing company/dealer finance office. Compare other lenders first.
Step 4: Watch for Added Fees or Taxes
Depending on your state, you may have to pay:
Sales tax on the buyout price
Title/registration fees
Documentation or processing fees if going through a dealer
Ask the leasing company:
“What’s my total out-the-door cost to buy the car?”
Step 5: Time It Right
You can often buy out a lease:
At the end of the lease (standard)
Early buyout (before lease ends—check contract for penalties)
Early buyouts may include:
Remaining lease payments
Early termination fee
Plus the buyout price
Only do an early buyout if you:
Love the car
Want to refinance it
Found a buyer who will pay more than you owe - I've done this twice and mad 8K.
Real Example:
You’re driving a 2021 Toyota RAV4 with a residual value of $20,500. You check KBB and see your car’s worth $24,000 right now.
That’s $3,500 in equity!
Buy it out
Refinance it at a low rate
Or sell it and pocket the difference
Deal Guard
Concierge Tip: We’ll Run the Buyout Math for You
Not sure if buying your lease makes sense? We’ll:
Check market value vs buyout cost
Review your lease agreement
Shop lenders for low-rate financing
Handle paperwork with the leasing company or dealer
No guesswork. Just clarity.
What to Avoid
Don’t buy out your lease without comparing market value
Don’t assume the dealer has to be involved (they don’t)
Don’t finance it without shopping around first
Don’t forget taxes and fees—ask for the full breakdown
Recap: Smart Lease Buyout Checklist
Look up your lease’s buyout price + fees
Check your car’s current market value
Decide how you’ll pay (cash, finance, or dealer)
Watch for hidden taxes and fees
Don’t rush—compare your options first
Next week we’ll break down car subscription services—are they the future of driving or just a waste of money?
You’re not just making moves—you’re making smart moves. 👊
—
Not sure if a lease buyout is right? Let us review the numbers for you.
Our Deal Guard concierge service gives you real answers and real savings.
Go to GETDEALGUARD.COM TO LEARN MORE
Let us deal with them for you.
Our car buying concierge service confirms every detail and protects your time, money, and sanity.
Our concierge car buying service saves you hours of stress and thousands in bad deals. Your time is valuable—let’s protect it together.
Go to GETDEALGUARD.COM TO LEARN MORE
See you soon,
Chase Jordan
#leasebuyout #cardealconcierge #carnegotiationtips #autofinancestrategy #carbuyingguide #week16
