Start 90 days before your lease ends
Most people think about their lease about two weeks before it ends. That's usually too late to get the best outcome. Around 90 days out, you still have time to compare offers, schedule an inspection, fix small damage on your own terms and line up your next car without a rush.
Before you decide anything, find three numbers in your lease paperwork or your leasing company's online account:
- Your buyout price: what it costs to purchase the car at lease end (sometimes called the purchase option price)
- Your mileage allowance: and how many miles you'll actually have when the lease ends
- Your disposition fee: a turn-in fee charged by most leasing companies, usually a few hundred dollars
With those three numbers, you can compare every option side by side.
Option 1: Turn the car in
This is the simplest option. You return the car, pay any end-of-lease charges and walk away. It makes sense when you're under your mileage, the car is in good shape and it isn't worth more than your buyout price.
What you may pay when you turn it in:
- Disposition fee, often waived if you lease another car from the same brand
- Excess mileage, charged per mile over your allowance at the rate in your contract (commonly 15 to 25 cents a mile)
- Excess wear and tear, such as tires below the minimum tread, large dents, cracked glass or curb-rashed wheels
Most leasing companies offer a free pre-inspection a few weeks before turn-in. Take it. It tells you exactly what you'll be charged, and a small repair from your own body shop is often cheaper than the leasing company's charge for the same damage.
Option 2: Buy the car out
Your contract sets a buyout price on day one. If the car is now worth more than that price, buying it out can make sense, either to keep it or to sell it and pocket the difference.
Buying out is worth a look if:
- You're well over your miles, since a buyout avoids the per-mile charge entirely
- The car has damage you'd otherwise pay for at turn-in
- You love the car and it's been reliable
- Similar used cars are selling for more than your buyout price
Sales tax and title fees apply when you buy, and the rules differ between Pennsylvania, New Jersey and Delaware, so ask for an out-the-door buyout number, not just the contract price. Some leasing companies also limit who can buy the car out, including dealers and other third parties, and those policies change. Check your lender's current rules before you count on selling the car to someone else.
Option 3: Trade it in, possibly early
If your car is worth more than the payoff, that difference is equity, and it's yours. You can apply it to your next lease to lower your payment or the amount due at signing.
This is where an independent broker earns their keep. We get your payoff from the leasing company, check what the car is worth to several buyers, and apply any equity to your next car. You don't have to sort out the handoff yourself. We handle trade-ins on leased cars all the time, and you can turn your current lease in the same day your new car is delivered. See how lease trade-ins work.
Manufacturers also run pull-ahead programs from time to time. These waive your last few payments if you lease a new car from the same brand a few months early. They come and go, so ask before you assume you have to wait until the last month.
Option 4: Extend your lease
Most leasing companies will extend a lease month to month, or for a set number of months, at the same payment. It's a useful bridge if the car you want isn't available yet, or you're waiting on a better program. An extension doesn't fix extra miles or damage. Those still count at turn-in, so it's a short-term tool, not a plan.
How to pick the right option
A quick way to decide:
- Under your miles, clean car, worth less than the buyout: turn it in, or trade in and move on
- Over your miles or have damage: compare the buyout or trade-in against the turn-in charges
- Car worth more than the buyout: trade it in and use the equity, or buy it and keep it
- Not ready for a new car yet: extend for a few months
The math changes from car to car and month to month, which is why it pays to check your real numbers instead of guessing. Our lease-end service does that comparison for you.
Thinking about keeping the car? Read should you buy out your lease.
Lease ending in the next six months? Send us your car and current mileage. We'll check your payoff and what the car is worth, compare it with this month's programs on your next car, and show you the option that leaves you with the most money. Call +1 (267) 216-6659 or use the quote form, and we deliver anywhere in PA, NJ and DE for free.