Dealer Wants to Purchase My Leased Car: Should I?

Dealer showing a new car model to the potential customer

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As your car lease ends, you may be wondering what options are available. If a dealer has made you an offer to buy your leased vehicle, it might seem tempting to accept and move forward quickly; however, before signing on the dotted line there are some things you should be aware of.

In this article, we’ll go over all the ins and outs of selling a leased car to a dealership, including what factors to consider before accepting their offer as well as how best to negotiate the most favorable deal possible.


Understanding Your Lease Agreement

Before selling your leased car to a dealer, it’s essential that you comprehend your lease agreement. Most lease contracts contain a buyout clause that lays out the terms and conditions for purchasing your vehicle at the end of the term. Usually, this buyout price will be set at its residual value – an estimate of what the car might be worth at that endpoint.


cropped view of realtor holding clipboard with lease agreement lettering on document


What is Residual Value?

Residual value is the estimated worth of a car at the end of its lease term, determined by the leasing company based on factors like make and model, condition, and anticipated mileage at that end.


Determining Your Car’s Residual Value

To assess your car’s residual value, consult either your lease agreement or contact the leasing company directly. However, keep in mind that this may differ from the actual market value of the car, thus impacting what amount you would receive if you decided to sell it off to a dealer.


Car dealer introducing with sale procedures


Pros and Cons of Selling to a Dealer

Selling your car to a dealership can be convenient, but it’s essential that you weigh the pros and cons before making your decision.


  • Quick and effortless process
  • No need to worry about advertising or haggling with private buyers
  • Dealer may pay more than the residual value if there’s high demand for the car


  • Dealer may offer less than market value
  • Dealers may deduct fees and charges from the offered price, leaving you without potential profits if you sell the car yourself.
  • Tips for Negotiating with a Dealer
  • If you’ve decided to sell your leased car to a dealer, here are some strategies you can use to negotiate the best deal possible.


Conduct Your Due Diligence

Before engaging a dealer, do your due diligence and research the market value of your car. Utilize online resources like Kelley Blue Book or Edmunds to get an estimated value.


Car dealer talking to couple in showroom


Shop Around

Don’t settle for the first offer you receive from a dealer. Take time to compare prices and quotes from multiple dealers in order to guarantee you’re getting the best possible deal.


Negotiate Fees and Charges

Dealers often deduct fees and charges from the offer price, such as disposition fees or excess mileage fees. Make sure you negotiate these costs to guarantee you get a fair deal.


Car dealer talking with clients selling them automobile


Consider Selling the Car Yourself

If you’re not satisfied with the offers from dealers, selling your car yourself could be worth exploring. While this process takes more time, it could potentially yield a higher sale price in the end.



Selling a leased car to a dealer can be convenient, but it’s essential that you understand the pros and cons before making a decision. Do your due diligence and negotiate with dealers so that you get a fair deal. If you’re not satisfied with what’s being offered, consider selling the car yourself.

I hope you found this article helpful and if you have any questions we recommend you use our car help chat service or feel free to check out other helpful car guides.


FAQs (Frequently Asked Questions)

Should I sell my leased car to a dealer or purchase it outright and sell it myself?

It depends on your individual circumstances, read this article to help you determine whats best for you.

Can a dealer buy my car if I still owe money on it?

Absolutely; however, they must first pay off any remaining balance on your lease before taking ownership of the vehicle.

Will selling my leased car to a dealer affect my credit score?

No, selling your car should not have any adverse effect on your score.

Can I negotiate the residual value of my leased vehicle?

No, that amount is fixed within your lease agreement and cannot be altered.

What happens if the dealer offers me less than my car’s residual value?

You are not obliged to accept their offer; you have two options: negotiate with them to try and secure a higher offer or buy out the car yourself and resell it privately.

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