Your lease is ending, and you have 5 options. The right one depends on one number: what the car is worth today against the purchase price in your lease.
Check that number about 90 days before the lease ends. It tells you whether to walk away, buy or trade in, and it leaves time for an inspection, a loan quote or a transfer.
The short version
- • Return: pay the disposition fee in your lease, plus any excess miles and wear. Most leasing companies waive the fee if your next car is theirs.
- • Buy out: the price is in your lease. Most leasing companies sell to you directly, with no dealer and no doc fee.
- • Trade in: if the car is worth more than the buyout, the difference is yours. Some leasing companies sell only to their own brand's dealers.
- • Transfer: GM and Nissan allow it; Mercedes, Volkswagen and Audi do not. Check whether you stay liable.
- • Extend: from 1 month at GM to 6 at BMW. Ask before the lease ends.
Option 1: Return the Car
Returning the car is not free. Three charges can apply, and your lease sets each one.
| Charge | What It Is | How to Cut It |
|---|---|---|
| Disposition fee | A flat turn-in fee your lease states (below). | Most leasing companies waive or cover it if your next car is leased or financed with them. |
| Excess wear | Damage beyond the leasing company's wear standard: a credit card at Toyota, Lexus and Mercedes, 2 inches at BMW and Volkswagen, 4 inches at Hyundai and Kia. | Get the free inspection and repair it yourself first. Honda leases include $500 of wear and Acura $750; Toyota covers up to $500 on leases after January 27, 2026. |
| Excess miles | The per-mile charge in your lease, times the miles over: 4,000 miles at $0.25 a mile is $1,000. | Buy the car instead: a buyout carries no mileage or wear charge. |
| Leasing Company | Disposition Fee | Waived or Covered When |
|---|---|---|
| BMW, MINI | Up to $495 | Your next lease is with BMW Financial Services, or it finances your buyout |
| Ford, Lincoln | As your lease discloses | You may qualify when you buy or lease a new Ford or Lincoln |
| GM | A flat fee in your lease | May be waived if you buy or lease a new GM vehicle, or buy the leased car |
| Honda, Acura | Set by state, in your lease | You buy or lease another new Honda or Acura within 30 days before or after turn-in |
| Hyundai, Genesis, Kia | In your lease | Covered up to $400 if you lease or finance a new one through them within 60 days |
| Mercedes-Benz | The "vehicle turn-in fee" in your lease | Credit up to $595 if your next car is leased or financed with Mercedes-Benz Financial Services |
| Nissan, INFINITI | Up to $395 | You lease or finance a new one through them within 30 days of the return |
| Toyota, Lexus | Set by your lease | Up to $350 if your next new or certified Toyota or Lexus is leased or financed through them within 30 days of the return |
| Volkswagen | $395 | You lease or buy a new or certified Volkswagen through VW Credit within 90 days |
| Volvo | $450 | No waiver published |
Source: each leasing company's own lease-end pages, checked September 2026 (linked in the buyout table below). Your lease states your fee.
Get the Free Inspection
Every leasing company above offers a free inspection before you turn the car in, usually in the last 60 days (GM suggests two to four months ahead; Toyota's excludes Hawaii and leases begun in New Hampshire or Wisconsin). It lists what you would be charged, so you can fix the cheap items yourself. Nissan and INFINITI require it, and their dealers are not allowed to do it; Toyota and Lexus have your dealer do it.
Key Takeaway
Read the three charges in your lease and book the free inspection. If you are far over your miles, price the buyout: buying the car ends the mileage charge.
Option 2: Buy the Car
Buying turns the lease into a purchase at the price your lease states. Compare that price with what the car is worth today.
| Case | Buyout Price | Worth Today | Result |
|---|---|---|---|
| Equity | $25,000 | $30,000 | $5,000 is yours: keep the car or sell it |
| No equity | $25,000 | $22,000 | $3,000 loss: return it and the leasing company takes it |
Buy It From the Leasing Company
You may not need a dealer at all. Most leasing companies sell the car to you directly: you pay them the payoff, they release the title, and you register the car at your DMV. No dealer, no doc fee. Some send the sale through a dealer in certain states, and Ford routes every purchase through a Ford dealer, so call yours first.
| Leasing Company | Sells to You Directly | Sells to Another Dealer |
|---|---|---|
| BMW, MINI | Yes: send the payoff with certified funds | No: a payoff sent by a third-party dealership is not honored |
| Ford, Lincoln | Through a Ford or Lincoln dealer. Electric cars may not be eligible | Not stated |
| GM | Yes: online through Mode (not in every state), or through your account | GM dealers only |
| Honda, Acura | Yes: pay online or by check | Honda and Acura dealers only |
| Hyundai, Genesis | Yes, except in CO, DC, FL, HI, IN, PA, SC and SD, where a dealer handles it | Not stated |
| Kia | Yes, except in the same eight states | Not stated |
| Mercedes-Benz | Yes, or through your dealer | Not stated |
| Nissan, INFINITI | Yes, except in Ohio and Illinois (a dealer). Nissan electric leases begun on or after December 12, 2022 cannot be bought | Not stated |
| Toyota, Lexus | Yes; some states require a dealer | Yes: you can assign your purchase option to another dealer |
| Volkswagen, Audi | Yes, except in Colorado, Florida and South Dakota (a dealer) | No: the title is not released to a third party |
| Volvo | Yes: online or by phone | Not stated |
Source: each leasing company's own pages (linked), checked September 2026. Policies change: confirm with yours.
Either way, your lease already sets the price. Federal rules (Regulation M) require it to state the purchase price when you sign. You pay that, plus a purchase option fee if the lease lists one, plus tax, title and registration.
Dealers have been caught adding fees on top. New York's Attorney General found Nissan dealerships adding "dealership fees" and "administrative fees" to end-of-lease buyouts, or inflating the price on the invoice. Fifteen dealerships paid more than $1 million in penalties and refunded more than $4.5 million, and in 2026 Nissan's finance company agreed to refund every overcharged buyer in the state. GM Financial tells its own customers they "should not be charged a fee by the dealer to facilitate your payoff."
Financing the Buyout
A buyout loan is a used-car loan, and used-car rates run higher than new-car rates at every credit level. Get a quote from your bank or credit union before you sit down with a dealer, so you have a rate to compare.
| Credit Score | Used-Car Rate | New-Car Rate |
|---|---|---|
| 781 to 850 | 6.29% | 4.41% |
| 661 to 780 | 8.81% | 6.15% |
| 601 to 660 | 13.93% | 9.71% |
| 501 to 600 | 19.10% | 13.52% |
| 300 to 500 | 21.62% | 16.11% |
Average loan rates, second quarter of 2026, by VantageScore 4.0 range. Source: Experian, State of the Automotive Finance Market.
Texas: The Buyout Is Taxed Again
In Texas, the leasing company paid 6.25% motor vehicle tax when it bought the car for your lease. If you buy the car at lease end, you pay 6.25% again on the buyout price, with no credit for the tax already paid (Texas Comptroller). On a $30,000 buyout that is $1,875.
Key Takeaway
Call your leasing company before a dealer: most sell you the car directly, with no doc fee. If a dealer handles it, compare its paperwork with your lease: any fee the lease does not list, other than tax, title and registration, is worth questioning. If it stays, file a complaint with your state Attorney General.
Option 3: Trade It In
A dealer can buy the car from your leasing company at the buyout price. If the car is worth more, the difference becomes credit toward your next car.
Not every dealer can make that offer. BMW honors the payoff only from you, GM sells only to you or a GM dealer, Honda and Acura only to you or their own dealers, and Volkswagen and Audi will not title the car to a third party. Toyota and Lexus let you assign your purchase option to another dealer. The buyout table above has each company.
In Texas, a leased car cannot count as a trade-in: the Texas Comptroller says a lessee is not the title owner, so it does not lower the tax on your next car there. A dealer that buys it from your leasing company to resell pays no tax on that purchase.
Key Takeaway
Get offers for the car before you decide, then ask your leasing company which buyers it accepts. If an offer beats the buyout price, the difference is yours.
Option 4: Transfer the Lease
A transfer hands the rest of your lease to someone else, often found through a lease-swap site. Two questions decide it: does your leasing company allow it, and are you released once it is done?
| Leasing Company | Transfers | Details |
|---|---|---|
| GM | Yes | $625 plus tax, paid by the new lessee. Not in the last 6 months |
| Nissan, INFINITI | Yes, but you stay liable | After a credit application; you remain on the contract as guarantor |
| BMW, MINI | By application | A lease assumption application exists; fee and release are not published |
| Mercedes-Benz | No | Except for a deceased customer's family, and Connecticut leases ($50 plus $595, and you stay jointly liable) |
| Volkswagen, Audi | No | Except after the account holder's death |
Source: each leasing company's own pages, checked September 2026. Ford, Honda, Acura, Hyundai, Genesis, Kia, Toyota, Lexus and Volvo publish no general transfer policy: ask yours.
Key Takeaway
Transfer only where the leasing company releases you. Where you stay liable, as with Nissan, the new driver's missed payments are yours.
Option 5: Extend the Lease
An extension buys time: waiting for a new car, or for a better moment to decide.
| Leasing Company | Extension |
|---|---|
| BMW, MINI | Up to 6 months; online only in the last 2 months of the lease |
| Volkswagen | 3 months, up to 6 for some models, with miles added in proportion |
| GM | 1 month past the end date |
| Volvo | Only if a new Volvo is on order |
| Honda, Acura | Offered with conditions; request it in your online account |
| Toyota, Lexus | Request it in your account; decided case by case |
| Nissan | Yes; ask your dealer or Nissan Finance |
| Ford, Lincoln, Mercedes-Benz | In limited circumstances; call |
Source: each leasing company's own pages, checked September 2026. Hyundai, Genesis, Kia and INFINITI publish no extension policy: ask yours.
Check your warranty's end date first. A 36-month lease on a car with a 3-year warranty ends when the warranty does, so any month you extend has no factory warranty.
Key Takeaway
Ask before the lease ends, get the extension in writing, and check that the warranty covers the extra months.
Which Option Is Right for You?
| Situation | Best Option | Why |
|---|---|---|
| Worth more than the buyout, want a new car | Trade In | The equity becomes credit on the next car |
| Worth more than the buyout, want to keep it | Buy Out | You pay less than the car is worth |
| Worth less than the buyout | Return | The leasing company takes the loss |
| Far over your miles | Buy Out | A buyout carries no mileage charge |
| Need out before the end | Transfer | Only where your leasing company allows it and releases you |
| Waiting for your next car | Extend | Buys time on the same car |
Key Takeaway
Start 90 days out: look up the purchase price in your lease, check what the car is worth, and call your leasing company. Those three steps decide the rest.
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