At the end of a car lease, you can return the vehicle, buy it for the residual value, or lease a new one. Before the lease officially ends, the vehicle is inspected for excess wear and mileage, and any remaining fees are calculated.
Lease-end decisions should be made 60–90 days before your maturity date.
Your Main Lease-End Options
Return the Vehicle
You can return the car to the dealership or leasing company.
You may be responsible for:
Excess mileage charges
Excess wear-and-tear fees
Disposition fee (typically $300–$500)
Once fees are settled, the lease account is closed.
Buy the Vehicle (Lease Buyout)
Most leases include a purchase option at a predetermined residual value, stated in your contract.
Buying may make sense if:
The vehicle’s market value is higher than the buyout price
You’ve exceeded mileage limits
You want to avoid disposition fees
You prefer keeping the car
Some lenders restrict third-party buyouts, meaning you may need to purchase the vehicle directly before selling it.
Lease or Finance a New Vehicle
Many manufacturers offer:
Loyalty incentives
Lease pull-ahead programs (select cases)
Waived disposition fees if you stay with the brand
This is common for drivers who prefer upgrading every 2–3 years.
