The end of a lease is easy to put off until the letter from the leasing company arrives. Starting about three months early gives you time to compare every option and avoid charges you could have prevented.
Option 1: Return the car
The simplest route. You schedule an inspection, hand back the keys and pay any charges for excess mileage or wear beyond normal use, plus a disposition fee, which is commonly a few hundred dollars. Many lenders offer a free pre-inspection a few weeks ahead, which gives you time to fix small items such as worn tires or scuffed wheels for less than you would be charged at turn-in. Disposition fees are often waived if you lease another car from the same brand.
Option 2: Buy the car
Your contract sets a buyout price, which is the residual value plus any purchase fees. If the car is worth more on the open market than that price, you have positive equity, and buying it can make sense, whether you keep it or sell it on. If it is worth less, returning it usually costs you less.
Option 3: Use your equity toward your next car
When your car is worth more than the buyout, that difference can go toward your next vehicle. Be aware that some leasing companies restrict buyouts by third-party dealers, which affects who can purchase the car and how the equity is captured. A broker can check your lender’s current policy and get competing offers on your car before you commit.
Option 4: Transfer the lease
Some lenders allow you to transfer the lease to another qualified driver, usually for a fee. It can be a good fit if you need out early and the remaining payments are attractive to someone else. Not every lender permits it, so check your contract first.
Option 5: End it early
Terminating a lease early through the lender is typically the most expensive option, since you are generally responsible for the remaining payments or the difference between the payoff and the car’s value. Before going this route, price a buyout, a trade or a transfer.
A simple 90-day plan
About three months before your end date, check your mileage against the allowance, request a buyout quote from your lender, schedule a pre-inspection and get an estimate of your car’s market value. With those four numbers, the right choice is usually clear.
Revlane handles lease returns, buyouts and trade-ins every day. Send us your contract details and we will lay out each option side by side.