Lease transfer vs lease buyout
Both get you out of the lease. The right one depends on a single number — your lease equity (what the car is worth today minus your contract's buyout price). Here's the honest comparison.
| Lease transfer | Buyout & sell | |
|---|---|---|
| Upfront cost | Finance-company transfer fee, plus any incentive agreed with the incoming lessee | Full buyout price (thousands) — usually financed or paid cash |
| Sales tax | Tax treatment depends on the transaction and province; confirm before signing | Buying out can trigger GST/PST or HST; confirm the amount for your province and situation |
| You come out ahead when… | You're underwater or roughly break-even on equity | Market value clearly exceeds buyout + taxes + selling costs |
| Risk after the deal | Confirm the finance company fully releases you — avoid "co-liability" transfers | Car sits unsold, prices move, you carry insurance and payments meanwhile |
| Speed | Depends on finance-company eligibility, credit review, and paperwork | Days to buy out, but selling can take weeks |
The 30-second decision rule
Positive equity that comfortably covers taxes and selling hassle → buy out and sell. Negative or thin equity → transfer and walk away clean. Not sure which side you're on? Run the numbers:
Going the transfer route?
List your lease for free — direct owner-to-owner, no listing fees, no middleman.
List your vehicle — free