Our Best Lease Buyout Loans May 2025

What is a Lease Buyout Loan?

When an auto lease ends, you might end up with 3 options. Option A is to end your leasing arrangement and purchase a new car or find an alternative mode of transport. Option B is to sign a new lease agreement for another vehicle. Option C is to purchase the car you’ve been leasing—which is known as a “lease buyout.” Your leasing agreement should stipulate the residual value, or estimated buyout price, of your vehicle. If you opt for a lease buyout, you’ll likely need to pay the residual value plus state taxes and DMV fees.

Depending on the vehicle, a lease buyout can potentially cost thousands if not tens of thousands of dollars. A buyout might be an idea to consider if the vehicle is still in good condition and if the buyout price is lower than the vehicle’s market value.

A lease buyout loan, as the name suggests, is a loan that funds your lease buyout. Lease buyout loans can be obtained at the end of the lease or toward the end of the lease.

LendingTree

LendingTree is a marketplace where you can set your parameters and then receive a list of relevant loan providers. One of the perks of LendingTree is that you fill out one application and can then review multiple loan options.

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MyAutoLoan

MyAutoLoan is a lending marketplace that lets customers find the right loan solution for their auto purchasing or refinancing needs. The company has developed proprietary technology that can help them match lenders to borrowers based on their needs.

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Discover Your Options: Types of Lease Buyout Loans

Like standard car loans, most lease buyout loans are secured loans whereby the car is put up as collateral. If you have a strong credit score, some borrowers may be willing to offer you an unsecured lease buyout loan. If you can’t get approved for a lease buyout loan, you can also consider an unsecured personal loan. Personal loans can be used for any purpose, although APRs are generally higher than for auto and buyout loans.

Applying for a Lease Buyout Loan

Before applying for a loan, we recommend you first think carefully about whether a buyout is really your best option. Read the terms of your leasing agreement carefully. Speak to your leasing company if any of the details are unclear. And compare your buyout price to the current market value of your car. (There are plenty of free online tools that can help give you a realistic estimate of your car’s value).

If you opt for a buyout, we suggest doing thorough research and comparing lenders. Each lender may offer different APRs, different terms, different loan amounts, and different levels of customer service. Therefore, it’s highly recommended to look at 3 to 5 lenders or use a loan comparison tool like LendingTree, CarsDirect, or MyAutoLoan to find the best lender for your needs.

Applying for a lease buyout loan is similar to applying for a car loan or any other loan. Your lender may ask for proof of the following:

• Vehicle type
• Personal ID or Social Security number, so they can run a credit check
• Annual income and employment, in the form of pay slips or tax filings
• Debt-to-income ratio
• Proof of home ownership or a rental agreement
• Military status, education status, or anything else which might affect your application.

Lease Buyout Loans: Rates and Terms

Generally speaking, the rates and terms for lease buyout loans may be similar to what you can find for auto loans. This is because lease buyout loans are almost the same thing as auto loans. With an auto loan, you’d make a down payment on a new vehicle and borrow the rest from the lender. With a lease buyout, the amount you pay to the leasing company during your leasing agreement is basically the same as a down payment.

Among the top auto lenders, you may find the following:

• Rates starting at 1.99%
• Terms from 12 to 84 months
• Loan amounts from $2,000 to $100,000
• Minimum credit scores from 500 to 660
• Funding from same day to several business days

Your Car's Value

We’ve already mentioned the importance of knowing your car’s value, and it’s worth emphasizing this point. It’s easy to get attached to your leased car, but don’t let emotion get in the way of the right decision.

Before going for a lease buyout, it's recommended that you know your car’s buyout price and its current market value. The buyout price is the amount you would pay the leasing company to purchase the car, plus taxes and Department of Motor Vehicles fees. The market value is the amount a dealer would be willing to pay you for the vehicle. If the market value is below the buyout price, you might be better off buying another second-hand car. But if the market value is equal to or greater than the buyout price, then a lease buyout could be a good option.

Loan Amounts: How Much Can You Borrow?

Each lender is different when it comes to loan amounts. Some lenders may offer a max loan amount of $30,000, while others can go as high as $100,000. Of course, the first thing to worry about when comparing lenders is the amount you need. Depending on your car, your lease buyout could potentially cost you a few thousand dollars to tens of thousands of dollars. But unless you’ve been leasing a luxury car, it’s unlikely you’ll need more than 50 grand to make a buyout. All the top auto lenders may be able to offer you a loan, but this could depend on a number of factors, including financial credentials such as credit score, income, and debt-to-income ratio. Therefore, as you near the end of your lease, it's recommended to maintain a healthy credit score and have all your documentation in order.

Disclaimers

PenFed:

The auto purchase and refinance cash bonus of $200 will apply to loans over $10,000 when the first two recurring payments are made from a PenFed Checking account. Applies to all purchase and refinance loan applications received at PenFed until 12/17/2024; refinance loans must be refinanced from another institution.

PenFed internal refinances and refinance loans originated from 3rd party partners are not eligible for this promotion. A PenFed Checking account does not have to be opened prior to 6/30/2024 but must be used to make the first two recurring payments and remain open until December 1, 2024, to qualify for the bonus.

The loan must be currently active and have the first two recurring monthly payments posted to the auto loan from a PenFed Checking account to qualify for the bonus. The $200 bonus will be deposited to the member’s PenFed Checking or Savings account within 60 days of eligibility completion or by December 1, 2024, whichever is sooner. The promotional bonus will be reported on the year-end Form 1099-INT as taxable income.

PenFed may discontinue or change the promotion at any time. Other restrictions may apply.

PNC Disclaimer:

Annual Percentage Rates (APRs) for loans amounts from $5,000 to $100,000 with repayment terms from 12 to 72 months currently range from 5.74% to 22.04 %. Available rates within this range may vary by loan amount, repayment term and model year.

The lowest rates are available to well-qualified applicants. Your actual APR may be higher than the lowest available rate and will be based upon multiple factors such as credit qualifications, loan amount, repayment term, model year, automated payment from a PNC checking account and number of days to first payment.  

APRs include a 0.25% discount for automated payment from a PNC checking account. Automated payment must be set up at loan closing to qualify for the 0.25% discount. If automated payment is discontinued, you may no longer receive an automated payment discount and your rate will increase 0.25%. 

Model Years: Auto Loans to be secured by a 2014-2023 model year non-commercial vehicle with up to 100,000 miles. Repayment term restrictions apply for vehicles with model years 2014-2017. Certain restrictions apply for mileage from 80,000 to 100,000. 

Credit is subject to approval. Certain restrictions and conditions apply. Rates are effective as of 11/13/2022 . Rates, terms and conditions are subject to change at any time. For more information, visit pnc.com/checkready.

Loan Payment Example: The monthly payment per $1,000 borrowed at 5.74 % APR for a term of 72 months would require 72 monthly payments of $16.45 based on 30 days to first payment. The monthly payment per $1,000 borrowed at 5.74% APR for a term of 12 months would require 12 monthly payments of $85.95 based on 30 days to first payment.

NOTE: The credit score ranges utilized to define "Excellent", "Good", "Fair" and "Poor " in the "Credit Score" drop down option are established by BestMoney.com as a guideline. Standards for rating credit scores and associated available rates may vary by lender.