Car Lease Buyout Loans in 2024

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LendingTree is compensated by companies on this site and this compensation may impact how and where offers appear on this site (such as the order). LendingTree does not include all lenders, savings products, or loan options available in the marketplace.

How Does LendingTree Get Paid?

LendingTree is compensated by companies on this site and this compensation may impact how and where offers appear on this site (such as the order). LendingTree does not include all lenders, savings products, or loan options available in the marketplace.
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Lease buyout loan rates

Written by Tara Mastroeni | Edited by Katie Lowery and Pearly Huang | Updated September 19, 2023

How Does LendingTree Get Paid?
LendingTree is compensated by companies on this site and this compensation may impact how and where offers appear on this site (such as the order). LendingTree does not include all lenders, savings products, or loan options available in the marketplace.

How Does LendingTree Get Paid?

LendingTree is compensated by companies on this site and this compensation may impact how and where offers appear on this site (such as the order). LendingTree does not include all lenders, savings products, or loan options available in the marketplace.
LenderStarting APRLoan amountsLoan terms
Autopay logo4.67%$2,500-$100,00024 to 96 months
Auto Approve logo5.24%$10,000-$150,00012 to 84 months
MyAutoLoan logo5.93%$8,000+24 to 72 months
DCU logo5.99%Up to 130% of the car’s value or purchase price36 to 84 months
PNC logo6.59%$5,000-$100,00012 to 84 months
Bank of America logo7.39%$7,500+48 to 72 months
LightStream logo9.24% *with autopay and excellent credit$5,000-$100,00036 to 84 months

Car lease buyout loans at a glance

Starting APR4.67%
Loan terms24 - 96 months
Loan amounts$2,500 - $100,000
Minimum credit score620
ProsCons

 Easy online application

 Prequalification available 

 Works with bad-credit borrowers

 Restricts the vehicles you can finance

 Advertised low rate hard to secure

 Some details aren’t listed online

Starting APR5.24%
Loan terms12 - 84 months
Loan amounts$10,000 - $150,000
Minimum credit score600
ProsCons

 No application fees

 Joint applications allowed 

 Loan counselors available to help with paperwork

 Restricts the vehicles you can finance 

 Many details not available online

 Not available in all states

Starting APR5.93%
Loan terms24 - 72 months
Loan amounts$8,000+
Minimum credit score600
ProsCons

 Easy online application

 Receive multiple loan offers

 May receive funding within 24 hours

 Imposes income requirement

 Vehicle restrictions vary by lender

 Online applications only — no phone number or email address provided publicly

Starting APR5.99%
Loan terms36 - 84 months
Loan amountsUp to 130% of the car’s value
Minimum credit scoreNot disclosed
ProsCons

 Interest rate discounts available 

 Ability to finance more than 100% of the car’s value

 No payments for the first 60 days 

 Must become credit union member to qualify

 Physical branches only located in Massachusetts and New Hampshire 

 Doesn’t offer prequalification 

PNC Bank logo #1

Starting APR6.59%
Loan terms12 - 84 months
Loan amounts$5,000 - $100,000
Minimum credit scoreNot disclosed
ProsCons

 Autopay discount available

 Co-applicants accepted

 Online application available

 Borrower is responsible for title transfer 

 Unclear eligibility requirements

 Imposes vehicle restrictions

Bank of America logo #1

Starting APR7.39%
Loan terms48 - 72 months
Loan amounts$7,500+
Minimum credit scoreNot disclosed
ProsCons

 Loans available nationwide

 Interest rate discounts are available for Preferred Rewards customers

 Loan decision in 60 seconds

 Higher minimum APR

 Higher minimum loan amount

 Doesn’t offer prequalification

Starting APR9.24% *with autopay and excellent credit
Loan terms36 - 84 months
Loan amounts$5,000 - $100,000
Minimum credit scoreGood-to-excellent credit
ProsCons

 Same-day funding available 

 Autopay discount available 

 No restrictions on year, make, model or mileage

 High minimum APR

 Good credit required

 Borrowers can’t change their payment due date

What is a car lease buyout?

When your car lease reaches the end of its term, you typically have three options: return the car to the dealer, use it as a trade-in or buy the car. If the last option is the most appealing, you may be considering a lease buyout loan to finance your purchase.

A car lease buyout occurs when you decide to buy the car you’re currently leasing at a pre-determined purchase price. This can happen at the end of your lease or you can decide to buy it early if you’re facing the possibility of paying high turn-in fees for excess mileage or wear and tear.

How to apply for a lease buyout loan

Applying for a lease buyout loan is similar to applying for an auto loan. While the exact process will vary by lender, here are some general steps you’ll follow to finance your lease buyout:

 Check your credit score 

Whenever you’re thinking about applying for financing, it’s a good idea to check your credit score first. Lenders use your credit score to determine whether to approve your loan request and the interest rate they’ll offer. The best rates go to borrowers with excellent credit scores, while those with lower scores may pay more for the privilege of borrowing.

Luckily, if you want to improve your credit score before applying for a loan to buy your leased vehicle, there are some things you can do. Start by checking your credit report for any errors. Then, concentrate on making your monthly loan payments on time, every time. Also, work on paying down existing debt to improve your debt-to-income ratio.

 Examine your lease contract

Reading your original lease agreement can give you a better idea of how much it will cost to purchase your car from the dealer. You may be expected to pay three sets of fees during a lease buyout, including:

1. Residual value: Your car’s residual value is the purchase option price that the leasing company charges for your vehicle. It may be negotiable and reflects what the car is worth, factoring in previous sale prices and demand for the particular make and model.

2. Taxes and Department of Motor Vehicle (DMV) fees: These can include sales tax and title transfer or registration fees.

3. Administrative fees: Your leasing company may also charge a fee to cover the costs of facilitating the transaction.

 Gather your supporting documents

The documents you’ll need to provide with your loan application will vary by lender, but you may need to provide some of the following supporting documents:

  • Proof of identity (driver’s license or passport)
  • Proof of insurance (car insurance card)
  • Proof of income (pay stubs, tax returns)
  • Proof of residence (lease agreement, mortgage statement, utility bill)
  • Vehicle information (current car lease agreement)
  • Current vehicle registration
  • Social Security number

 Consider your payment options 

It’s always a good idea to shop around for an auto loan. Receiving quotes from multiple lenders will help you ensure that you are choosing the loan with the best interest rate available to you and loan terms that suit your needs.

When in doubt, consider getting quotes from multiple lenders before making your decision. Be sure to provide each lender with the same information so that you have the ability to make an apples-to-apples comparison once you have all your quotes in hand. You may receive up to five auto loan offers from lenders by filling out a single form with LendingTree.

 Apply for a lease buyout loan

Once you’ve weighed your options and selected the best lender for you, the last step is to fill out the loan application and provide any supporting documentation. If the lender approves your loan, review the terms carefully and ask any questions that you may have before signing on the dotted line.

Factors to consider when deciding whether to buy out your vehicle lease

If you’re still on the fence about buying your leased car, here are a few things to consider as you weigh your options:

  1. Residual price: How does your car’s purchase option price compare to the open market? Using an industry guide like Kelley Blue Book can help you determine whether you’re being charged a fair price for your vehicle.
  2. Mileage and wear: Leasing companies make allowances for cars to come back with average mileage and expected wear and tear. However, if you’ve been rough on your car or have far exceeded the mileage limits spelled out in your lease, you could be on the hook for added fees as a penalty. If you’re facing high lease-end fees, you could put that money toward a lease buyout instead.
  3. Vehicle needs: Consider how well your leased vehicle fits your transportation needs. Perhaps you’d like to downsize into something smaller or make the trade to a sportier vehicle. But if your leased vehicle still fits your lifestyle and you enjoy driving it, why change?

Frequently asked questions

While the residual price, or purchase option price, is sometimes negotiable, you may have better luck trying to negotiate the fees associated with your lease buyout loan, like administrative fees or title transfer fees. These fees are often set by the leasing company and may come with a bit of flexibility.

The total lease buyout price is often higher than a vehicle’s residual value because there may be additional fees attached to the transaction, like sales tax, title transfer and registration fees or administrative fees.

Yes, it’s possible to buy out a car lease early. However, not all lenders offer this financing option, so be sure to select a lender that specializes in early lease buyouts.