Lease Buyout
Keep the car you already drive
You know its history, you know the seat position, and you know it has never been mistreated. Financing the residual is often cheaper than starting over with a new lease.
Reasons to buy it out
A buyout makes the most sense when the car is worth more than the number written in your lease contract three years ago.
Equity you already earned
If the market value exceeds your residual, that difference is yours the moment you buy the car. Handing the keys back gives it to the leasing company instead.
No mileage or wear charges
Overage at 20 cents a mile adds up fast. When you buy the car, excess mileage and the scratch on the bumper stop mattering.
A known quantity
You have every service record and you know exactly how it has been driven. That is more than any used car listing can tell you.
How residual value works
The number set three years ago
When you signed the lease, the leasing company guessed what the car would be worth at the end of the term. That guess became your residual value, and your monthly payment covered the difference between the sale price and that number. The guess is now either high or low, and that decides whether a buyout is a good deal.
A worked example
A three-year lease on a midsize SUV, bought out at 5.09% APR over 60 months.
Rates current as of July 2026 and subject to change. Membership eligibility required. This is a demonstration website; rates, products, and figures shown are illustrative only.
Common questions
When should I start the process?
About 60 days before your lease ends. Payoff quotes are usually valid for 10 to 30 days, and title transfers from a leasing company can take three weeks.
Can I buy out the lease early?
Usually yes, but an early payoff includes the remaining lease payments plus the residual, so it rarely saves money before the final six months of the term.
What rate applies to a lease buyout?
Lease buyouts price at our used auto rates, currently from 4.59% APR, based on the model year of the vehicle rather than the age of the lease.
Do I still owe mileage penalties if I buy it?
No. Excess mileage and wear charges apply only when you return the vehicle. Buying it out removes both.
Will my manufacturer let a credit union do the buyout?
Most will. A few captive lenders restrict third-party buyouts and require you to purchase through the leasing dealer. Call your lease servicer first and we will work with whatever they allow.
Can I roll the sales tax into the loan?
Yes, up to our advance limit of 120% of retail value. Rolling in tax and fees is common and it keeps cash in your pocket at closing.
Lease ending soon?
Send us your residual and mileage and we will tell you whether buying it out beats turning it in.