How do I find out my lease buyout price?

Your lease buyout price is listed in your lease agreement as the 'residual value' or 'purchase option price.' You can also find it in your leasing company's online portal or by calling the leasing company directly. The buyout price is typically the residual value plus a purchase option fee ($200–$400) and any applicable taxes and fees.

Is buying out a leased car a good deal?

It depends on whether the residual value is below or above the current market value. If the car's market value (from KBB or CarMax) exceeds your residual, you have built-in equity — buying out and keeping or reselling may make sense. If the residual exceeds market value, the buyout is overpriced relative to the open market and you should let the lease expire.

Can I negotiate a lease buyout price?

In most cases, no. The residual value is contractually set at lease signing and the leasing company typically cannot reduce it. However, you may negotiate the purchase option fee and any dealer markup on the buyout. Buying directly from the leasing company (not through a dealer) often avoids a dealer fee.

What happens if I don't buy out my leased car at the end of the lease?

At lease end, you return the vehicle to the dealer. You may owe: excess mileage fees (typically $0.15–$0.30 per mile over the limit), wear-and-tear charges, and a disposition fee ($300–$500). If you plan to return a vehicle with significant excess mileage or damage, comparing the total end-of-lease costs to the buyout price is worthwhile.

How do I finance a lease buyout?

Lease buyouts can be financed like any used car purchase. Most banks and credit unions offer lease buyout loans. Apply with your own bank or credit union first for the best rate, then compare to the leasing company's financing offer. The leasing company's financing is not always the best rate.

Auto Lease Buyout Calculator 2026 — How Much to Buy Your Leased Car

Your lease buyout price is the residual value set at lease signing, plus any purchase option fee and applicable taxes. Whether this is a good deal depends entirely on how the residual compares to the car’s current market value. In 2026, with used car prices remaining elevated, many lease buyouts are actually good deals — or even underpriced relative to the open market.

Lease Buyout Formula

$$\text{Total Buyout Cost} = \text{Residual Value} + \text{Purchase Option Fee} + \text{Applicable Taxes and Fees}$$

Example:

Residual value on lease agreement: $22,000
Purchase option fee: $300
Sales tax (6%): $1,338
Total buyout: $23,638

How to Calculate Whether to Buy Out Your Lease

Step 1: Find your residual value in your lease agreement or lessor’s online portal.

Step 2: Get the current market value of your car — same make, model, year, mileage, and condition — from Kelley Blue Book (kbb.com) and CarMax (instant offer).

Step 3: Compare:

Scenario	Action
Market value > Residual	Strong buyout candidate — you have equity
Market value ≈ Residual	Neutral — compare to cost of alternatives
Market value < Residual	Overpriced buyout — return the car

Worked Example

	Vehicle A	Vehicle B
Lease residual	$24,000	$24,000
Current KBB market value	$27,500	$20,000
Built-in equity (or overprice)	+$3,500 equity	-$4,000 overpriced
Recommendation	Buy out	Return

In Vehicle A’s case, you can buy at $24,000 + fees and immediately have an asset worth $27,500. You can keep it, or sell/trade it for a profit (check if your state allows third-party lease buyouts).

What Is Included in the Buyout Amount?

Item	Typical Amount
Residual value	As stated in lease
Purchase option fee	$200–$400
Documentation fee	$0–$500 (varies by state/dealer)
Sales tax	Varies by state (typically on full buyout price)
Registration/title fees	$50–$300

How to Buy Out Your Lease — Step by Step

Call the leasing company (not the dealer) — get the buyout quote and payoff amount
Get a competing market value — KBB, CarMax instant offer, Carvana offer
Arrange financing — apply with your bank or credit union for a used auto loan; compare to the leasing company’s rate
Complete at the dealer or directly with the lessor — some manufacturers allow direct buyout without going through a dealer (avoiding the dealer markup)
Inspect before buying — even a leased car you’ve driven may have undisclosed damage; have a mechanic verify before finalizing

Can You Sell a Leased Car Buyout to a Third Party?

Some leasing companies allow the lessee to buy out the lease and immediately sell to a third party (such as Carvana or CarMax). Others prohibit third-party sales and require the lessee to register the car first. Check your lease agreement or call your leasing company — Ally Financial, GM Financial, and Ford Credit have varying policies.

Written by WealthVieu

WealthVieu researches and writes data-driven personal finance guides using primary sources including the IRS, Bureau of Labor Statistics, Federal Reserve, and Census Bureau.

The content on Wealthvieu is for informational purposes only and should not be considered financial, tax, or investment advice. Consult a qualified professional before making financial decisions. Full disclaimer · Editorial policy