Lease Buy Out Time? Here’s Why You Should Refinance Instead of Using the Dealership

Dakota DeRego
Jun 18
3 min read

If your lease is ending soon and you love your vehicle, buying it out can be a smart move—especially in today’s high car-price market. But here’s something many drivers don’t realize: going through the dealership for your lease buyout may cost you thousands more than it should. At Digital Auto Refi Co, we help customers take control of their lease buyouts by refinancing directly with a lender, avoiding dealership markups, inflated rates, and hidden fees.

🚗 Lease Buyout Options: Bank vs. Dealer

When your lease ends, you typically have two options to purchase your vehicle:

Buy it through the dealership where you leased the vehicle.
Complete the buyout with a bank or refinance company like Digital Auto Refi Co.

Most people assume they’re required to go through the dealership—but that’s not true. In fact, many lenders will allow you to buy out your lease directly by refinancing the vehicle for the amount owed on the lease agreement, often with better terms and more transparency. Their only downside is having to be inconvenienced and go to the bank, and some even charge you large fees to do title services! Knowing which option fits your budget and costs you less while showing the importance of your time is key!

💸 Why Dealers Cost You More Than You Think!!!

Here’s where dealerships get sneaky: they often mark up your lease buyout price, adding in vague fees, unnecessary inspections(which lead to you need to replace this on your car ect...) , and inflated interest rates. They may also try to get you into a new car instead, simply because that’s more profitable for them.

Common dealer tactics include:

Quoting a higher payoff amount than what’s in your lease agreement
Charging “dealer documentation” or “lease disposition” fees
Offering interest rates 2%–5% higher than what you could get on your own
Requiring unnecessary add-ons like extended warranties or GAP to complete the deal

Don’t overpay just to stay in the car you already love. At Digital Auto Refi Co, we help you buy your lease out directly, using your actual payoff amount—not an inflated one.

🔑 Refinance to Regain Control

When you buy your lease out through Digital Auto Refi Co, you’re back in the driver’s seat. You choose:

✅ The interest rate (based on your credit, not dealership incentives)
✅ The loan term (short or long, based on your monthly budget)
✅ Optional coverage like GAP insurance or a vehicle service contract

Our customers often save $1,000–$3,000 by avoiding dealership fees and securing better rates. Plus, our process is remote and hassle-free—no dealership pressure, no backroom sales tactics.

📉 The Numbers Don’t Lie

Here’s a quick comparison:

	Dealership Buyout	Digital Auto Refi Co
Payoff Amount	Marked up	Exact lease amount
Interest Rate	8–12%	4–7% avg
Extra Fees	$500–$1,200+	$0 hidden fees
Add-on Pressure	High	Optional only

If you're near the end of your lease and considering a buyout, don’t make a costly mistake. Dealers may claim it's easier to buy through them, but easier doesn't mean cheaper. Its also not easier as you have to go to the dealership which as we all know always takes HOURS!

📝 Ready to Buy Out Your Lease the Smart Way?

Skip the dealer markup. At Digital Auto Refi Co, we make it easy to refinance your lease buyout on your terms, with lower rates, no pressure, and full transparency. Start your application online, or contact us to learn how much you can save.

Keep the car you love—and keep more money in your wallet.👉 Click here to get started 📲 Follow us on Facebook for more tips and updates.