Lease transfer vs lease buyout
Both get you out of the lease. The right one depends on a single number — your lease equity (what the car is worth today minus your contract's buyout price). Here's the honest comparison.
| Lease transfer | Buyout & sell | |
|---|---|---|
| Upfront cost | Transfer fee ($75–$500+), maybe a small incentive to the new driver | Full buyout price (thousands) — usually financed or paid cash |
| Sales tax | None for you — the lease simply changes hands | Most states/provinces tax the buyout, even if you resell right away |
| You come out ahead when… | You're underwater or roughly break-even on equity | Market value clearly exceeds buyout + taxes + selling costs |
| Risk after the deal | Confirm the finance company fully releases you — avoid "co-liability" transfers | Car sits unsold, prices move, you carry insurance and payments meanwhile |
| Speed | 2–6 weeks (finance company approval of the new driver) | Days to buy out, but selling can take weeks |
The 30-second decision rule
Positive equity that comfortably covers taxes and selling hassle → buy out and sell. Negative or thin equity → transfer and walk away clean. Not sure which side you're on? Run the numbers:
Going the transfer route?
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