Lease Buyback vs. Lease Buyout

Read time: 3 minutes

While many drivers use the terms “lease buyback” and “lease buyout” interchangeably, they’re actually different types of transactions.  

Regardless of which search term brought you here, we’ll walk you through the definitions of each one and set you up for success in a lease buyout if that's what you're after.

What is a lease buyback?  

A lease buyback refers to a situation where the leasing company, often the dealership, offers to purchase the leased vehicle back from the lessee before or at the end of the lease term. 

This can happen if the dealer wants to resell the car due to its high value or demand, or if the lessee can no longer afford the lease payments and the dealer offers to buy back the car to end the lease early.  

It’s less common than a lease buyout and usually involves the dealer taking back the car under agreed terms.

What is a lease buyout?  

A lease buyout occurs when the lessee decides to purchase the vehicle they have been leasing, usually at the end of the lease term, but sometimes before.  

The buyout price is typically predetermined in the lease agreement and reflects the vehicle’s residual value — the estimated value of the car at the end of the lease, taking into account depreciation over time. The lessee pays this amount, plus any applicable fees, to take full ownership of the vehicle. (Here at Lease End, lease buyouts are our specialty.)

Similarities and Differences 

Both buybacks and buyouts are involved in ending a lease agreement and both involve a financial transaction where ownership of the vehicle changes hands. And in both scenarios, the vehicle’s value at the time of the transaction is a critical factor in determining the cost or benefit to the lessee or dealer.

If you love the car you lease, why give it up when your lease ends? Instead of handing it back to the leasing company, consider buying it and making it your own. With Lease End’s streamlined process and financing options from our trusted partners, transitioning from a lease to ownership is easier than ever. 

Benefits of a Buyout

We're all about educating drivers on their options...especially the ones the dealer isn't going to tell you about.

1. Save Money. Skip the dealership’s disposition fees and any penalties for excess wear and tear by buying out your lease. It’s a smart financial move that puts money back in your pocket.
2. Drive Without Limits. When you own your car, mileage restrictions are a thing of the past. Drive as much as you want without worrying about overage fees.
3. No Surprises. You already know your car’s history and condition. There’s no need to gamble on a used car when you can keep a vehicle you trust and love.
4. Leverage Your Equity. If your car’s market value is higher than the residual value, you’ve got positive equity. Keep the car for the long haul or sell it when you choose, turning that equity into cash.
5. Skip the Hassle. Avoid the headaches of dealership visits and DMV lines. We handle everything for you, so you can complete the process from the comfort of your home. 

Finding the Best Lease Buyout Loan Rates 

With partners like Ally Bank, TD Bank, and Capital One, Lease End secures competitive financing rates tailored to your needs. 

Curious about your monthly payment? Our payment calculator can give you an estimate based on your unique situation. On average, Lease End customers see monthly payments around $481.59 for their lease buyouts, compared to the $723 average new car loan payment in Q1 2024 for top credit borrowers, according to Experian. 

If your credit score has improved since you leased your car, you might qualify for even better rates, lowering your monthly payments. 

Here’s what some of our customers are paying for monthly buyout loan payments for popular models: 

1. Volkswagen Jetta: $291
2. Honda Civic: $329
3. Honda CR-V: $407
4. Jeep Grand Cherokee: $507
5. Toyota Tacoma: $589

The Lease End Process: Simple and Stress-Free

1. Tell Us About Your Car 
   We’ll ask a few basic questions about your vehicle and lease to get things started. 
2. Review Your Loan & Coverage Options 
   We’ll show you customized financing options along with any additional coverage you might want. 
3. Sign the Paperwork 
   We prepare everything you need. Just review and eSign securely through your Lease End account. 
4. Sit Back and Relax 
   We’ll take care of the titling, registration, and new plates, so you can avoid the hassle of DMV trips. 

Why Not the Dealer? 

Sure, you could handle the buyout at your dealership, but be prepared for extra fees, added stress, and time-consuming processes. With Lease End, it’s a direct path to ownership with none of the usual dealership drawbacks. 

Don’t just take our word for it. Our drivers rave about the smooth, hassle-free experience we provide. 

Let's Go 

Imagine owning the car you’ve come to love — no more lease payments, just the freedom and flexibility of ownership, all with an affordable monthly payment. Lease End is here to guide you every step of the way, ensuring a smooth transition from lessee to owner. 

Ready to start? Enter your VIN or license plate number to begin your buyout online. Your journey to car ownership is just a few clicks away.