Your lease is ending. Here are your options.
A few months before your lease ends, the choice is yours, and the dealer would happily make it for you. Here is what each path actually costs and when it makes sense, so you walk in already knowing the answer.
Start two to three months before lease end
The lender sends an end-of-lease notice. That window is your leverage: time to check the car’s market value, line up the next car, and avoid a rushed decision at the counter.
Option 1: return it
Hand the car back and walk away. You pay the disposition fee set in your contract, plus charges for mileage over your limit and damage beyond normal wear. Take photos, fix small dings yourself when that is cheaper than the dealer’s charge, and know your mileage before you go.
Option 2: buy it out
Buy the car for the residual value written in your contract, plus tax and fees. This wins when the same car sells for more used than your residual, which has been common lately. If the buyout is below the market price, you are buying built-in equity.
Option 3: trade the equity
If the car’s market value is above the payoff, that gap is yours. You can put it toward your next lease or use it as the down payment on a purchase. We cover how trade-in equity works in its own guide.
Option 4: re-lease something new
If you just want a fresh car and a clean payment, line up the next lease before you turn in the old one, so there is no gap and no pressure. See what is scored highest right now.
Common questions
Most lenders allow a short month-to-month extension. It helps when your next car is not ready, but the per-month cost usually runs higher than a new lease, so treat it as a bridge, not a plan.
No. You can turn the car in at most same-brand dealers, and buy or lease your next car anywhere. Where you turn in and where you get the next deal are two separate decisions.