Can You Sell a Leased Car?

If you are currently leasing a car and its value on the open market is higher than the predicted residual value that was calculated at the time of the lease, you may be able to sell the leased car before the lease is over and walk away with a tidy little profit. That said, the option to sell a leased car isn’t always feasible.

Auto finance companies are pretty good at predicting residual value — that’s the amount a car will be worth at the end of the lease term — because that figure is one of the most important pieces of the calculation to determine monthly payments. The company that financed the car isn’t in business to lose out on potential profit. But sometimes there are fluctuations in the marketplace, and some vehicles might be worth more than the residual value.

Jump to:
Why is this a good time to sell your leased car?
Do I have equity in my lease?
Which vehicles have the most equity for 2025?
Top 10 most popular models for lease buyouts
What finance companies allow a lease buyout?
How to sell a leased car: 3 ways to turn equity into cash
FAQs

Why is this a good time to sell your leased car?

The COVID-19 pandemic kicked off one of these marketplace shifts. There’s been some correction since the peak of used car values in 2021. Still, according to Ivan Drury, Edmunds’ director of insights, some lessees might find themselves in a positive position as their leases come to an end.

“Due to astronomical new car values, many buyers are resorting to used vehicles. This heightened level of demand in the used market is translating into prices for used vehicles that are well above expectations, especially [for] nearly new used cars,” said Drury. 

What’s more, Drury adds that the last few years of lower-than-typical sales volume and reductions in the number of leased vehicles have added a level of complexity in the used market by constricting supply. That’s another factor that could work in your favor if you’re hoping to sell a leased vehicle before the lease is over.

Do I have equity in my lease?

The first step to answering whether or not you can sell a leased car is to determine if your current car lease has any equity. The residual value is also the amount you can buy the car for at the end of the lease, so you're looking to see if the car's current value is higher than the residual value. Since you usually have the right to buy the car at the end of the lease term for that residual value, you can profit from a lease company's inaccurate lower estimate. If, on the other hand, the car is worth less than the residual amount, you can turn the car in without incurring any extra expense.

If you want to make use of possible equity, your first stop should be Edmunds' car appraisal page. There, you can get the trade-in and private-party values of the car. We'll also give you the option to receive an instant offer on your vehicle, which gives you a solid price to have as a point of comparison.

Next, find the residual value in your lease contract. Subtract the residual value from the trade-in value — this is the approximate equity you might have. Knowing the current market value of your leased car and showing the dealership you've done your research on pricing will strengthen your negotiating position.

If your car is a year or more away from the end of the lease term and you want to check for current equity, call your leasing company and ask for a buyout price. Subtract the buyout price from the car's current market value to see if you have equity.

Which vehicles have the most equity for 2025?

Edmunds analysts looked at the estimated residual values for 2022 model-year vehicles leased in the first two months of the year and compared those residuals to the trade-in values for similar vehicles traded in during the same period of 2025. Edmunds data showed that some 2022 models may have as much as a 35% difference between their projected residual value and their actual average trade-in amount in 2025.

Top 10 most popular models for lease buyouts

According to the 2025 Lease End Lease Buyout Report, these are the top vehicles that owners commonly buy out of their leases, ranked by the average equity retained by the buyer. The figures the dealership will offer you aren't likely to be an exact match with what you see here, but if you are leasing one of these models, it is more likely to be a great candidate for selling it and making a profit. Similarly, if you choose to buy out your lease, these models are likely to hold their value for longer than others.

Honda Accord ($8,730)
Toyota RAV4 ($8.557)
Honda CR-V ($8,411)
Honda Civic ($7,766)
Toyota Highlander ($6,979)
Toyota Tacoma ($6,897)
Ram 1500 ($6,505)
Honda HR-V ($6,032)
Jeep Grand Cherokee ($6,025)
Jeep Wrangler ($2,901)

What finance companies allow a lease buyout?

This strategy isn't quite available to everyone. A number of automotive finance arms do not allow a third-party buyout of a leased vehicle. The list has grown in recent years, as dealerships that often relied on lease returns to stock their used car inventory now find themselves in serious need of cars to fill their lots and showrooms. In other words, you could have your vehicle appraised on Edmunds to get an independent quote on its value, which is a valuable resource, but you would not be able to redeem the offer at one of our participating dealerships. In this scenario, the remaining options would be to take your vehicle to any dealership of the same brand and get an offer for it or else purchase it from the lease company directly.

We try to keep this list up to date, but rules are constantly changing. Please double-check with your leasing company to know your options. Note that in some of the restricted cases below, a third-party buyout may be allowed if the buyer is a dealership, not an individual. So be sure to read the fine print to be fully clear on your options.

Auto finance companies that have partial or complete restrictions on third-party off-lease buyouts:

• Acura Financial

• Ally Financial

• Audi Financial Services

• BMW Financial Services

• Ford Credit

• GM Financial

• Honda Finance

• Infiniti Financial Services

• Lincoln Credit

• Mazda Credit

• Nissan Motor Acceptance

• Southeast Toyota Financial

• Tesla

• Volkswagen Credit

• Volvo Financial

• World Omni

Source: CarMax

How to sell a leased car: 3 ways to turn equity into cash

You'll need an appraisal to determine if you have positive equity. Just enter a few details about your vehicle and soon you'll have a price for your vehicle that can be paid out that same day. Not all leased vehicles have equity, of course. But as your lease return date draws near, keep an eye on its market value. Keep in mind, though, that these strategies may not apply to everyone:

1. Sell your leased car and get a check.

Assuming your leased car isn't from the prohibited brands above, you can take your car to any dealership, not just the one where you arranged the lease. The dealership will buy the car at the trade-in price, then arrange to pay the leasing company what you owe and give you a check for the equity. However, don't expect the money immediately in this scenario. The dealership will mail you a check once it gets a clear title, assuring that your car doesn't have any outstanding parking tickets. Just in case, ask to get the trade-in agreement in writing and state the amount due to you.

Can you sell a leased car to CarMax*?

Yes, in fact, we highly recommend it. According to the company, you can sell your leased vehicle to CarMax in almost the same way as any other financed car. It will appraise the car or truck, then contact the leasing company for a payoff quote and process any equity you might have. You can get the process started on Edmunds with an appraisal, which will give you an offer from CarMax, plus a few other dealerships. The CarMax offer is good for seven days and redeemable at any of their locations. Enter a few details about your vehicle, and you'll soon have a price for it that can be paid out that same day. The same applies to heading directly to a CarMax location. (*Disclaimer: Edmunds is owned by CarMax, but we stand by the recommendation.)

2. Sell your leased car to a neighbor, friend or family member. This method requires a bit of trust, so it helps to sell your car to someone you know. But you can sell to any buyer you find, and you'll be able to get the private-party price for the car, which is higher than the trade-in price that dealers pay.

Here's what you do: After finding a trusted buyer, have that person mail a check for the buyout amount to the leasing company. Once you receive the title (the leasing company will only send it to the person leasing the car), sign it to release your interest in the vehicle, and give the title to the buyer. The buyer can then register the car and pay sales tax at that time. But be careful: If the buyer waits longer than 10 days, the state might try to charge you both sales tax, which would wipe out your profit.

According to the Auto Club of Southern California, a way to prevent this situation is to pay the sales tax and DMV fees as soon as possible and then return to the DMV to conclude the deal with the title in hand. This transaction is called a "lease buyout transfer." Contact your state's DMV for more details.

3. Use the equity as the down payment on your next car. In this scenario, the equity in your current car becomes a cash down payment for the new one. Once you know you have equity, you can take your car to any dealer to begin a new lease or sales contract. Not all dealers will offer you the same amount for your leased car buyout, so you might have to shop around for the best offer. The amount should be close to or better than the Edmunds trade-in price.

Dianne Whitmire, fleet and internet director for West Coast Toyota in Long Beach, California, said she uses the equity in returning lease cars to help her customers in a variety of ways. She had one customer with two cars — one was a leased vehicle with equity and one a purchased car that was "upside down," meaning that the loan balance was greater than the car was worth. "In that case, one washes the other" to pay off the loan, she explains. Experts say you might get more money if you are going "brand to brand," meaning selling a Toyota to a Toyota dealership, although any dealership can handle the transaction.

It's important to make sure all the numbers add up. Agree on the exact amount of equity you will receive and look for that amount in the down payment box on the contract. Alternatively, you can also use the equity to pay the fees required to begin a new lease rather than pay that money out of pocket. Finally, if you live in a state that allows a trade-in vehicle to reduce the sales tax, you might want to chat with the dealership to see what the best option is.

FAQs

Is it a good idea to sell a leased car?
It might be a good idea to sell a leased car before the lease is up if the car is worth more than the residual value that was calculated at the time it was initially leased. If there’s no additional value to gain, it may be a better idea to turn the lease vehicle back in when the leasing period has ended.

Can I sell my car if it is leased?
It may be possible to sell your car if it is leased. Not all auto finance companies allow lessees to sell their leased cars to third parties. If that's the case with the car you are currently leasing, you might need to check your options at a dealership that handles the brand of car you’re leasing.

Can you sell a leased car before the lease is up?
It is possible to sell a leased car before the lease is up, but the early timeframe will vary depending on the leasing company. For example, some companies allow a sale six months before the lease is up, while others allow it only a month before the lease expires. You are responsible for the remaining payments on the lease, so take that into consideration because that remaining balance might cut into the potential profit.

Are leased cars good to buy?
Buying a leased car is a good idea for those looking to break the cycle of leasing and get into a used car. You're the original owner, so need to look into the vehicle's history or do any research on whether you like the car. The price may not be negotiable, so make sure you focus your efforts on determining whether the buyout price is fair.

What is an off-lease car?
An off-lease car is an industry term for a vehicle whose lease has expired and is now being sold as a used car. Many certified pre-owned vehicles are off-lease cars since they are a few years old and have relatively low miles.

What is the cheapest car to lease?
The cheapest car to lease would likely be the base model of a subcompact vehicle. But in general, a lease can be configured to have as low a payment as you'd like provided you make a large enough down payment. The key is to strike a balance between a low monthly payment and a low down payment. Edmunds maintains a list of Best Car, Truck and SUV Lease Deals Under $299. Read it for more information on cheap leasing options.