5 Smart Reasons To Buy Out Your Lease Instead of Getting a New Car
Written by
Emily Fowler
Edited by
Amber Barkley
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.
20 Years
Helping You Live Richer
Reviewed
by Experts
Trusted by
Millions of Readers
Leasing a car can feel like an easy option — drive it for a few years, then hand it back and get a new one. But in today’s market, buying out your lease instead of returning it might save you money.
According to Lease End‘s latest Lease Buyout Report, the 14,235 lease buyouts they analyzed in 2024 resulted in drivers saving $75.7 million. Here are five reasons buying out your lease instead of getting a new car could be a smart financial move.
Potential for Lower Monthly Payments
While, for many drivers, lower monthly payments is one of the attractions of leasing a vehicle, buying out your lease can sometimes result in lowering those payments even more. This is particularly so if the buyout price is below current market value.
In 2024, the average monthly payment for lease buyouts was $512, and some of the most popular buyout choices came in even lower, according to Lease End.
Compare that to the average 2024 monthly auto lease payment of $638 and the average monthly auto loan payment of $655, both per Experian, and it’s clear why many drivers are choosing to keep the cars they already feel comfortable with, instead of risking a higher-cost lease or new-car loan.
Avoid Sky-High New Car Prices
The cost of new cars has remained at record highs since 2022, with the average new car costing $48,641 in March 2025, according to Car Edge.
“When you buy out your lease, you’re often walking away with thousands in built-up equity that you’d otherwise be handing back to the dealer,” said Zander Cook, co-founder and CEO of Lease End. “It’s a smart financial play, especially when new car prices are through the roof, and interest rates aren’t exactly friendly.”
No Surprise Fees or Dealer Markups
Leasing another car means potentially dealing with new fees, dealer markups and fluctuating financing rates.
Cook explained that people often underestimate how mileage or wear-and-tear charges can stack up, and the Lease Edge study shared the example of Land Rover drivers buying out the Range Rover Velar, with an average mileage overage of 8,000 plus miles. Those drivers would have had to pay $800 to $2,400 in overage fees if they hadn’t bought out their leases.
Market Conditions Favor Lease Buyouts
With used car values staying high and new car prices still inflated, market dynamics are tipping the scales toward lease buyouts. According to Lease End, the average age of a lease buyout driver dropped from 50 to 48 in just one year — proof that more drivers are seeing the financial upside.
In an unpredictable pricing environment, holding onto a leased vehicle can be a smarter financial decision than re-entering the new car market at today’s elevated costs.
“Lease buyouts give drivers more control at a time when every dollar counts,” said Cook. “People are realizing they don’t have to just hand the car back — they can keep a vehicle they trust and potentially save thousands in the process.”
Resale Value Can Work in Your Favor
Some vehicles hold their value exceptionally well. Honda Civics and Ram 1500s are two of the most bought-out lease models, according to the study, and both have been noted as holding their resale value well, according to GoodCar. Holding on to one of these could mean a strong resale price down the road.
A lease buyout isn’t always the best financial decision for everyone. If the lease-end buyout price is higher than the car’s current market value, you could end up overpaying. Financing costs can also add up, especially if you don’t qualify for a competitive interest rate.
Before making a decision, compare your buyout price to the car’s market value, explore financing options outside the dealership and factor in future maintenance costs. When done strategically, a lease buyout can be a smart financial move.
More From GOBankingRates
