We believe everyone should be able to make financial decisions with confidence. And while our site doesn’t feature every company or financial product available on the market, we’re proud that the guidance we offer, the information we provide and the tools we create are objective, independent, straightforward — and free.
So how do we make money? Our partners compensate us. This may influence which products we review and write about (and where those products appear on the site), but it in no way affects our recommendations or advice, which are grounded in thousands of hours of research. Our partners cannot pay us to guarantee favorable reviews of their products or services. Here is a list of our partners.
3 Ways to Tap the Unexpected Equity in Your Leased Car
Despite new restrictions on selling to a third-party dealer, you do have options for accessing leased car equity.
Many, or all, of the products featured on this page are from our advertising partners who compensate us when you take certain actions on our website or click to take an action on their website. However, this does not influence our evaluations. Our opinions are our own. Here is a list of our partners and here's how we make money.
Shannon Bradley Lead Writer | Auto loans, car buying, personal finance
Shannon Bradley is a NerdWallet authority on auto loans. Before joining NerdWallet in 2021, Shannon spent 30-plus years as a writer, content manager and marketer in the financial services industry. In these roles, she developed financial expertise and created educational content covering a wide range of personal and business topics. Shannon is based in Newburgh, Indiana.
Dawnielle Robinson-Walker Assistant Assigning Editor | Mortgage lenders and homebuying
Dawnielle Robinson-Walker supported content creation across verticals at NerdWallet as an at large editor before landing on Home mortgages in 2024. She spent over 16 years teaching creative writing and African-American literature, as well as writing and editing for various companies and online publications. Prior to joining NerdWallet, she was an editor at Hallmark Cards and a contributing writer at Forbes Health.
A shortage of semiconductor chips and other car parts has led to low new car inventory, higher used car demand and skyrocketing car prices. This supply chain disruption caused by COVID-19 has resulted in an unusual rise in leased car values — leaving lessees wondering exactly how to take advantage of their car's equity.
“These are such strange times to have a lease coming to an end. My car is worth more now than it was when I leased it,” says Ryan Antkowiak, a Twin Cities, Minnesota, financial advisor and certified financial planner.
Antkowiak, like many lessees, is finding his car’s buyout price originally set in the lease agreement is much less than the car’s current market value — in his case $6,000 less. In fact, a 2021 iSeeCars analysis shows cars leased three years ago have, on average, $7,000 worth of equity built up.
If you’re near the end of your lease and find your car has unexpected equity, here are some ways you might be able to tap into it.
1. Sell to a third-party dealer
In the past, lessees have worked with third parties, such as Carvana and Shift, to buy out their lease, giving them access to the equity without having to first buy the car themselves. However, many captive lenders — the financing arm of auto manufacturers — have put a stop to this practice. Technically, car manufacturers own the leased car, their dealerships need cars to sell, and they want cars turned back in.
In a July 2021 news release, American Honda Finance Corporation announced, “... lease customers can purchase their leased vehicle but are otherwise required to return or trade-in the vehicle to a Honda or Acura dealer only.”
Leasehackr, an online community dedicated to car leasing, provides an up-to-date list of lenders that no longer allow third-party buyouts. Some captive lenders may still allow third-party buyouts but discourage it by charging third parties a much higher buyout price.
2. Sell to a participating dealer
One possible approach for accessing your leased car’s equity is finding a participating dealer willing to purchase it.
Leasehackr co-founder Michael Sin says, “Someone with a GM lease might be able to find a GM dealership who would be willing to purchase the car directly from GM. The downside of that is the customer might not get the highest trade-in price, compared to a company like Carvana or CarMax, but I think it’s definitely an option on the table and something people should consider instead of just returning their lease. Right now, turning in their lease is basically the worst possible scenario, because their car is probably worth a lot more than the buyout.”
Brian Evans, a lessee from the Indianapolis area, worked with Swapalease.com, a marketplace for car lease transfers, to auction his car to its dealer partners. Originally looking for an individual to take over the final 12 months of his lease, Evans ended up selling the car and receiving a check for $6,000. Evans says, “This was a car I put on Swapalease.com just to get rid of it. I had no idea that I could profit off of this lease. I got out of my lease, I got $6,000, and I went and put that down on my wife’s new, used car.”
NerdWallet's ratings are determined by our editorial team. The scoring formula incorporates coverage options, customer experience, customizability, cost and more.
NerdWallet's ratings are determined by our editorial team. The scoring formula incorporates coverage options, customer experience, customizability, cost and more.
NerdWallet's ratings are determined by our editorial team. The scoring formula incorporates coverage options, customer experience, customizability, cost and more.
NerdWallet's ratings are determined by our editorial team. The scoring formula incorporates coverage options, customer experience, customizability, cost and more.
NerdWallet's ratings are determined by our editorial team. The scoring formula incorporates coverage options, customer experience, customizability, cost and more.
NerdWallet's ratings are determined by our editorial team. The scoring formula incorporates coverage options, customer experience, customizability, cost and more.
NerdWallet's ratings are determined by our editorial team. The scoring formula incorporates coverage options, customer experience, customizability, cost and more.
NerdWallet's ratings are determined by our editorial team. The scoring formula incorporates coverage options, customer experience, customizability, cost and more.
NerdWallet's ratings are determined by our editorial team. The scoring formula incorporates coverage options, customer experience, customizability, cost and more.
NerdWallet's ratings are determined by our editorial team. The scoring formula incorporates coverage options, customer experience, customizability, cost and more.
NerdWallet's ratings are determined by our editorial team. The scoring formula incorporates coverage options, customer experience, customizability, cost and more.
NerdWallet's ratings are determined by our editorial team. The scoring formula incorporates coverage options, customer experience, customizability, cost and more.
NerdWallet's ratings are determined by our editorial team. The scoring formula incorporates coverage options, customer experience, customizability, cost and more.
NerdWallet's ratings are determined by our editorial team. The scoring formula incorporates coverage options, customer experience, customizability, cost and more.
NerdWallet's ratings are determined by our editorial team. The scoring formula incorporates coverage options, customer experience, customizability, cost and more.
NerdWallet's ratings are determined by our editorial team. The scoring formula incorporates coverage options, customer experience, customizability, cost and more.
NerdWallet's ratings are determined by our editorial team. The scoring formula incorporates coverage options, customer experience, customizability, cost and more.
NerdWallet's ratings are determined by our editorial team. The scoring formula incorporates coverage options, customer experience, customizability, cost and more.
NerdWallet's ratings are determined by our editorial team. The scoring formula incorporates coverage options, customer experience, customizability, cost and more.
NerdWallet's ratings are determined by our editorial team. The scoring formula incorporates coverage options, customer experience, customizability, cost and more.
NerdWallet's ratings are determined by our editorial team. The scoring formula incorporates coverage options, customer experience, customizability, cost and more.
NerdWallet's ratings are determined by our editorial team. The scoring formula incorporates coverage options, customer experience, customizability, cost and more.
NerdWallet's ratings are determined by our editorial team. The scoring formula incorporates coverage options, customer experience, customizability, cost and more.
NerdWallet's ratings are determined by our editorial team. The scoring formula incorporates coverage options, customer experience, customizability, cost and more.
NerdWallet's ratings are determined by our editorial team. The scoring formula incorporates coverage options, customer experience, customizability, cost and more.
NerdWallet's ratings are determined by our editorial team. The scoring formula incorporates coverage options, customer experience, customizability, cost and more.
Some lessees are working around captive lender restrictions by buying their leased car themselves, and then selling it to a third-party dealer, private party or really any buyer they choose. It’s an approach that does require more effort.
For example, if you don’t have cash on hand, you would need short-term financing, such as a bank or credit union loan, to pay for the car. And you would then need to register and title the car before you can sell it, which could mean paying sales tax. Some states do have a grace period, providing time to register and sell a car before sales tax is due. Requirements vary from state to state, so you should talk to your local Department of Motor Vehicles before going down this path.
Finally, if a lack of car inventory prevents you from buying or leasing another car, or you just like your leased car, you might decide to keep it. In that case, a lease buyout loan could help with financing.
NerdWallet's ratings are determined by our editorial team. The scoring formula incorporates coverage options, customer experience, customizability, cost and more.
NerdWallet's ratings are determined by our editorial team. The scoring formula incorporates coverage options, customer experience, customizability, cost and more.
NerdWallet's ratings are determined by our editorial team. The scoring formula incorporates coverage options, customer experience, customizability, cost and more.
NerdWallet's ratings are determined by our editorial team. The scoring formula incorporates coverage options, customer experience, customizability, cost and more.
NerdWallet's ratings are determined by our editorial team. The scoring formula incorporates coverage options, customer experience, customizability, cost and more.
NerdWallet's ratings are determined by our editorial team. The scoring formula incorporates coverage options, customer experience, customizability, cost and more.
NerdWallet's ratings are determined by our editorial team. The scoring formula incorporates coverage options, customer experience, customizability, cost and more.
NerdWallet's ratings are determined by our editorial team. The scoring formula incorporates coverage options, customer experience, customizability, cost and more.
NerdWallet's ratings are determined by our editorial team. The scoring formula incorporates coverage options, customer experience, customizability, cost and more.
NerdWallet's ratings are determined by our editorial team. The scoring formula incorporates coverage options, customer experience, customizability, cost and more.
NerdWallet's ratings are determined by our editorial team. The scoring formula incorporates coverage options, customer experience, customizability, cost and more.
NerdWallet's ratings are determined by our editorial team. The scoring formula incorporates coverage options, customer experience, customizability, cost and more.
NerdWallet's ratings are determined by our editorial team. The scoring formula incorporates coverage options, customer experience, customizability, cost and more.