Roughly 300,000 EV leases and over 2 million ICE leases will return in 2026. Most lessees follow the path of least resistance: turn the vehicle back in at the dealership at lease end, walk away, and start a new lease or buy a different vehicle. For many lessees, this is the right choice. For a meaningful number, it leaves real money on the table.
Specifically, lessees whose vehicle is worth more than the buyout price specified in their lease contract have what is called lease equity. They can buy out the lease at the contractual price, sell the vehicle for current market value, and keep the difference. In 2026, with used car prices remaining elevated and specific vehicle categories appreciating, lease equity is more common than it was in normal years. This piece covers how to check for lease equity, the math of buyout-and-sell decisions, and how to actually execute the strategy.
Free to use. No obligation. Compare offers from multiple licensed dealers against your lease buyout price.
What Lease Equity Actually Is
Your lease contract specified a residual value at the time of signing: the price you can purchase the vehicle for at lease end. This number was set based on what the leasing company projected the vehicle would be worth at maturity. The projection was made 24 to 36 months before lease end, and like all projections, it can be wrong in either direction.
If the vehicle’s current market value exceeds the contracted residual, you have lease equity. The size of the equity is the difference between current market value and the residual. Lease equity is uncommon in stable markets because leasing companies tend to project residuals at or slightly above expected market value to maximize their own returns. In disrupted markets like 2021 and 2022, lease equity was widespread because used car values rose dramatically faster than leasing companies projected. In 2026, lease equity is less common than during those years but still meaningful on specific vehicle categories.
How to Check Whether You Have Lease Equity
Step 1: Find Your Buyout Price
Look at your lease contract or contact your leasing company directly. Most lease contracts specify a buyout price for early lease termination as well as the residual value at maturity. The maturity residual is the lower of the two numbers in most cases and is what you would pay if you bought out the lease at the end of the contracted term.
If you are 6 months or more from lease maturity, your early buyout price may include additional fees and may be higher than the maturity residual. If you are within 60 days of lease maturity, the buyout price is typically the residual itself.
Step 2: Get Current Market Estimates
Use KBB, Edmunds, and a current cash offer from Carvana, CarMax, or a multi-dealer platform to estimate current market value. Our guide to comparing valuation tools covers how to use each. The number that matters for the lease equity calculation is what an actual buyer will pay, not what a valuation tool estimates, so prioritize real offers over published estimates.
Step 3: Calculate the Gap
Subtract your buyout price from your current market value. The result is your potential lease equity before taxes and transaction costs. A buyout of $19,000 with a current market value of $22,500 gives you $3,500 in gross lease equity. After taxes (in most states, you pay sales tax on the buyout transaction) and transaction costs (title fees, possibly a small dealer documentation fee if you sell through a dealer), the net usually runs $2,500 to $3,000 on that scenario.
How to Execute a Buyout-and-Sell If You Have Equity
Option 1: Buy Out and Sell to Carvana or CarMax
Some lessees buy out the lease, take possession of the title, and then sell to Carvana or CarMax. This produces a clean transaction but requires you to have cash or financing for the buyout payment, which can be substantial. You then receive Carvana or CarMax’s offer and pay off the buyout financing if any.
Option 2: Buy Out and Sell to a Local Dealer
Some local dealers will work with you on a single combined transaction: they help you buy out the lease and immediately purchase the vehicle from you. This eliminates the need for you to come up with the buyout cash separately because the dealer’s payment to you covers the buyout. Practically, the dealer pays the leasing company directly and pays you the equity difference, similar to how lien payoff works on a financed vehicle.
Option 3: Buy Out and Sell to a Multi-Dealer Platform
Multi-dealer platforms route your vehicle to multiple dealers who submit competing bids. The winning dealer handles the lease buyout transaction along with the purchase. This option typically produces the highest headline number because multiple dealers compete for your specific vehicle. Clairvo operates this way specifically.
Option 4: Direct Lease Transfer or Assumption
Less commonly, you can transfer the lease to another consumer who takes over the remaining payments. Platforms like Swapalease and LeaseTrader facilitate these transfers. This produces less direct equity capture than buyout-and-sell but eliminates the need for you to come up with buyout financing. The lessee taking over your lease usually pays a small fee in exchange for assuming your contractual terms.
Free to use. No obligation. See competing offers from licensed dealers against your buyout price.
Specific 2026 Considerations for EV Leases
The 300,000 EV lease returns hitting the market in 2026 are concentrated on specific models that were heavily leased in 2023 due to IRA tax credit dynamics. Our analysis of the EV lease wave from the dealer side covers the supply picture. From the seller side, several patterns matter.
Some EV Lease Buyouts Are Set Below Current Market
Manufacturers heavily subsidized EV leases in 2023, which sometimes pushed residual values below expected market projections. Specific models with strong demand retention may show meaningful lease equity in 2026. Tesla Model Y leases, Hyundai Ioniq 5 leases, and certain Kia EV6 trim configurations have shown lease equity opportunities for 2026 lessees.
Other EV Lease Buyouts Are at Market or Above
Some EVs depreciated faster than originally projected (the Bolt before discontinuation, certain Nissan Leaf trims, some early Mach-E configurations). For these vehicles, the lease buyout may be at or above current market value, which means turning the lease in is the better economic option than buying out.
Battery Health Affects Buyout-and-Sell Economics
Used EV buyers care about battery state-of-health more than any other factor. If your lease vehicle has documented battery health (most EVs make this available through the manufacturer’s app or service tools), a healthy reading supports stronger resale numbers. A degraded reading may push the buyout-and-sell math into unprofitable territory.
Common Mistakes to Avoid
Letting the Dealership Buy Out Your Lease at the Residual
If you have meaningful lease equity, the dealership where you turn in your lease is happy to buy out the lease at the residual and capture the equity themselves. This is not fraud; it is just the default outcome if you do not know your equity position. Always check for lease equity before turning in the vehicle.
Assuming No Equity Without Checking
Some lessees assume their vehicle is worth less than the buyout based on general depreciation expectations. In 2026, this assumption is wrong on a meaningful share of vehicles. Always run the calculation before deciding.
Underestimating Transaction Costs and Taxes
Lease equity is gross of taxes and transaction costs. In states with sales tax on the buyout transaction (most states), $3,500 of gross equity might net $2,500 to $2,800 after costs. Make sure the math works at the net level, not just the gross level, before committing to a buyout-and-sell strategy.
Frequently Asked Questions
Can I buy out my lease and sell the car?
Yes. If your lease vehicle’s current market value exceeds your contractual buyout price, you have lease equity. You can purchase the vehicle at the buyout price and sell it to a third party (Carvana, CarMax, a local dealer, or a multi-dealer platform) for the higher market price. The difference, less taxes and transaction costs, is your net lease equity.
How do I know if my lease has equity?
Compare your contractual buyout price (from your lease contract or leasing company) against the current market value of the vehicle. If market value exceeds buyout, you have lease equity. Get actual offers from real buyers rather than relying only on KBB or Edmunds estimates, since published estimates can differ meaningfully from what buyers will actually pay. Multi-dealer platforms produce reliable current market reads in 24 to 72 hours.
Should I buy out my lease or turn it in at the end?
Depends on whether your vehicle has lease equity. If current market value exceeds your buyout price by a meaningful amount (typically $2,000 or more after taxes and costs), buying out and selling produces real economic value. If market value is at or below buyout price, turning the lease in is the simpler and equally profitable choice. Check the math before defaulting to either option.
Do dealers help with lease buyout-and-sell transactions?
Yes, especially local dealers and multi-dealer platforms. Many dealers will handle the lease buyout transaction along with their purchase of the vehicle from you in a single combined deal. This eliminates the need for you to come up with the buyout cash separately because the dealer’s payment covers the lease buyout. The dealer pays the leasing company directly and pays you the equity difference.
Is there lease equity on EV leases in 2026?
Sometimes, depending on the specific vehicle. EVs heavily subsidized through manufacturer lease programs in 2023 sometimes have residuals set below current market value, producing meaningful lease equity for 2026 lessees. Tesla Model Y, Hyundai Ioniq 5, and certain Kia EV6 configurations have shown lease equity opportunities. Other EVs depreciated faster than projected, which puts the buyout at or above market and makes turning the lease in the better choice. Check the math on your specific vehicle.
Free to use. No obligation. See current market offers against your lease buyout price.
