Should You Buy Out Your Lease or Walk Away? Let’s Break It Down

So your lease is almost up—and now comes the big question: should you buy the car or turn it in and walk away?

This decision isn’t always black and white. Some lease buyouts are great deals; others can cost you more than the car’s actually worth. In this post, I’ll break down the real-world factors you should be looking at—and how to confidently make the right move for your money, lifestyle, and long-term goals.

Start With the Numbers: Is the Buyout a Deal or a Dud?

The first thing to compare is your residual value (what your lease says you can buy the car for) versus the current market value. Tools like CarMax, Carvana, Edmunds, Kelley Blue Book, and JD Power (formerly NADA) can all give you fast appraisals.

Let’s say your buyout price is $20,000. If Carvana tells you your car is worth $23,000, that’s instant equity. You’re in a good position to buy and still come out ahead. But if the car is only worth $15,000? Walk away—you’re paying more than it's worth.

Don’t forget taxes either. That $20K buyout? Add another 8% tax—$1,600—to get your actual cost.

Condition & Sentiment Matter

If you’ve taken great care of the car, maybe just put on new tires, and it still fits your life? That’s a strong reason to buy. You know the car’s history. You’ve driven it for years. No surprises.

But if it’s been in an accident or has a bad CarFax? Even if it was repaired, you’re now dealing with “damaged goods.” That alone can reduce future resale value and make a buyout less appealing.

Financial Planning: Think Big Picture

Another factor? What’s your next move. If buying out your lease leads to a $600 monthly payment, but leasing a brand-new vehicle puts you at $500/month, do the math. How long do you plan to keep this car? Is it still under warranty? Are you just swapping one long-term payment for another?

Leasing gives you flexibility. But buying gives you ownership—and possibly no car payment at all after a few years. Decide what makes the most sense over 5 to 10 years, not just month to month.

Ready to Buy? Here’s How.

You’ll need to call your lease company and ask for the purchase steps. Usually, that includes signing an odometer disclosure, getting a payoff quote, and arranging your own financing. You can also go through a dealer—but watch for upsells.

Pro Tip: Shop your loan. If your bank offers 5% and the dealer quotes 7%, go with your bank. And if you’re doing a 5-year loan with no cash down, consider GAP insurance. But skip the unnecessary add-ons like windshield protection or paint sealant.

Also, double-check warranty coverage. If you’re driving a Hyundai or Kia, that 100,000-mile powertrain warranty still sticks around after your lease ends—another reason a buyout might make sense.

Bottom line: Buying your leased car can be a smart move—but only when the math checks out, the car's in great shape, and it fits your lifestyle moving forward. If you need help running the numbers or want a second opinion, reach out to me anytime.