“Should I buy out my lease?” super-thread


I’m in South Florida. I received an offer from Volvo to turn in my car for a new lease and they’ll waive remaining months (about 5 months left) plus incentives for the new lease “up to $3,250”, offer ends March 31st. Based on an Edmunds quote and caravana prices vs my RV, equity is at 9-11k.

Car is S60 interested in new 2022 (yes 2022) XC60 or XC90

Whats the best strategy to follow? Anyway I can cash the equity and take the leasing offer? Or will I have to wait for the lease to end, buy then sell and miss the promotion? If I take the offer I loose the equity?


I’m doing the exact same thing right now. Volvo locked down 3rd party buyouts, but if you’re getting another Volvo you can trade it into the dealer. The dealer can give you your equity. If they’re not entertaining it, you can buyout your lease, take title and sell it wherever you want.

I sent an overnight cashiers check to Volvo yesterday and expect the title in a week or so. I’m selling mine to a Volvo dealer, and they’re giving me full equity.

It’s a bit of a game, but it’s worth playing. Best of luck!

Is this an official pull-ahead program from Volvo, or is the Volvo dealer claiming they’ll “take care of your payments”?

Official from VCFS

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Just checking. We get a lot of traffic from people who are excited about an offer because the dealer says they are “eating the payments,” which is a shell game offset by a lower dealer discount. :slight_smile:

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2020 X3M Competition

  • if Lease is not with OEM captive bank (eg US Bank, Ally), who and what disposition fee is
    BMW Financial Lease
  • The residual value and disposition date (when are you supposed to turn it in?)
    Disposition Date: June 25, 2023
    Residual – $47,136.15
    Security Deposit – $4,900.00
  • Current payoff — NOT the same as the residual unless you have made the last payment
    Total payoff amount – $48,991.33
  • If you have extended your lease, where are you on that timeline?
  • Do you have equity? What would the third parties would pay you to buy your lease today?
    According to dealership resale values, yes — Though I’m unsure about true resale value amount vs a purchase offer. Car is currently at 14,700 miles.

What was their offer to purchase your car?

I don’t have an offer. I never mentioned that I had one. Though resale values online look like they range anywhere from 10-15k+ above what my true buyout price would be (subtracting the MSDs)

Without knowing what they will buy it, it’s difficult to answer.

Go online to a tool at Carmax (Which they can’t buy it anyhow) and get a few baseline numbers.
It’s difficult to get you any answers without some knowledge of how it works.

Do you LIKE the car? Do you want to keep it?

You need to get actual buyout quotes for this. I see you found the first post and answered all the questions (thank you!) — it also has a link of places who will buyout your lease. Spend some time plugging your vin and info in there to get quotes, resale won’t help you make this decision.

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2020 Volvo XC 60 T5 AWD Premium Package, 26K Miles
Disposition Fee - $450
Current Bank - Volvo Financial Services
Disposition Date - 7/1/2023
Monthly Lease - $399
Residual Value - $26,218.90
NY Sales Tax (.0875) -$2294
Extended Lease Options - none
Equity - Dealer offered approximately 1500 towards new lease

KBB Trade in Value $31-34,000
Carvana Offer $33,071
Carmax Offer $32,400

I enjoy the car, and I have found I don’t use it as much as I thought (23K miles over nearly 3 years). I drive it for work, but not every day. Deals on new XC60s are 50% more than my current price. Found a deal on an XC40 Plus loaner for $490 with $3000 DAS, but I feel like I would be leaving a lot of money on the table. I like getting a new car every few years, but seems like giving the market another year before jumping back in may make sense.

Also seems like I could buy out the car, then sell it for a $4,500 profit. Am I missing something? What’s the best move here.

Trade the car in for the XC40 Loaner and have them give you the equity on it.

You’re 3 1/2 months from disposition, so your payoff is more than your RV.

Your car is under warranty for 4 years, I’d do the math on a buyout in June, and consider driving it another year. But I’d also be sure my Costco membership is current (join today if you aren’t) and see if there is a Spring incentive after the current Audi one where the lease programs improve.

2020 Volvo XC90 T5 Mom (10/36), ~19k miles
MSRP - $58,990
Residual - $35,718.55
Current payoff - $39,713.10 (3 payments left)
Dealer buyout - 36,587 (just tried on Vroom)
Monthly - $460 (includes max MSDs, adjusted for sales tax on move from CA to NJ, was $500/mth)

not quite sure what I’d attempt to get if not buying out, but just started searching for any similar deals or slight upgrades if similar specs/monthly.

thanks in advance for any feedback

Same general advice

Do the math on a buy-out and drive it while it’s still under warranty. A new lease with loyalty is going to be $250+ a month right now. The programs may improve between now and disposition.

Good to know I have options. I am just starting the process early - if they blow me away with a lease deal, I’ll take it. But if not, the buyout seems the way to go. Thanks for the advice.

Definitely on that Costco membership! I didn’t do it the first time around - I won’t make that mistake again.

I’m in the same position as you, only a couple of month ahead, so have done some research on what’s out there re 3 row replacements.

Bad news is there’s not really anything inspiring out there at the mo, esp given the great deals we got on our XC90s back then.

I was tempted by a Nissan Pathfinder and then Clutch’s Infiniti QX60 group buy but ultimately neither worked out availability or financially wise and I have actually bought a Tesla M3 to replace the XC90 that expires on 3/31

Ultimately I’ll replace my Volvo V60 (bought from lease as it had loads of equity), with something larger at some point but will be relying on that to be our ‘big car’ until something enticing comes along

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I’ve got a 2021 BMW x3 m40i that I leased end of 2020. It was my first lease. The takeaway I get from scanning the pages of posts in this thread is I had unusually good timing, and will not see that kind of deal right now.

I’m 6 months from lease end, so I don’t have to make up my mind yet, but given that CarMax offers me a couple thousand over even the current lease buyout cost + sales tax, the car is well under the lease miles (thanks COVID!), and I actually like the thing, I think there is probably at least a 75% chance I’ll be buying it.

So, since this is the end of my first lease, I’m just trying to understand if there is anything I’m missing. My calculation is lease buyout + sales tax is the cost. In the other direction the sales tax is pretty much offset by reduced excises tax in Mass if I drive it for a couple more years, which is the likely outcome. I wouldn’t buy it just to sell it.

Beyond that, it’s the normal depreciation. My last two cars I kept for 8-9 years, and one of them was an E46 that I had for 150k miles, so it’s not like I don’t know what I’m getting myself into there. (Having experienced 150k in a BMW, I will not be keeping this one for that many miles :slight_smile: )

Anything I’ve missed?

Have a kia k5
Buyout without taxes 20200.84
What should I get next??
KBB $28,227


  1. No one here can tell you what to get next.
  2. KBB is useless for pricing, Carmax / Carvana / Vroom etc offers real pricing, KBB offers an ‘estimate’ of what they think a dealer will pay. Considering the Tax check bubble is deflating right now, it might not be worth that $28k.
  3. What’s your monthly payment?