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.
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.
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.)
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.
Lease Buyback | Lease Buyout | |
Initiator | Dealer or leasing company | Lessee (driver) |
Purpose | Dealer can capitalize on a high-demand vehicle | Driver can purchase and keep the car they've loved driving |
Timing | Before the end of the lease term | At or around the end of term |
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.
We're all about educating drivers on their options...especially the ones the dealer isn't going to tell you about.
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:
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.
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.