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Return the lease or sell it yourself?

At the end of a lease the contract names a residual value. If the car's market value is above it, buying the car at that residual and selling it yourself can pay off instead of returning it — the difference stays with you rather than the leasing company. If it is below, returning is the better choice.

What to look at

  • Look up the residual value in the contract and compare it with comparable offers on the market. Five comparables is the minimum for a reliable view.

  • At return the condition is recorded. Having small damage repaired beforehand is almost always cheaper than the charge you would otherwise face.

  • Excess mileage is billed per kilometre. The rate is in the contract and is the item that most often surprises.

  • A buyout needs the leasing company's agreement and takes a few days. If you want to sell yourself, start well before the contract ends.

Common questions

Can I simply list a leased car?
You may only sell what you own. While the car belongs to the leasing company you need the buyout first. A listing offering “lease transfer” is a different transaction and must be described as such.

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