Why Does a Dealer Buy a Lease End Car?


So you're wondering why a dealership would want to buy that three-year-old car that you're giving back to get the newest and best model available. Well, that used lease may be worth more than you think.

Used Car Manager's Dream

  • Most cars that come off lease are first looked at by car dealers to see if they can be sold in the used car department. A low-millage lease return could be a gold nugget for a dealership.

Keep Your Manufacturer Happy

  • Manufacturers like to see dealerships buying back lease returns, since it helps keep the make with a dealer that has both the resources to sell and to maintain the vehicle. This also helps retain the vehicle's value, since you know that the car has been maintained by a dealership it's entire life.


  • Some manufacturers actually give their dealerships extra cash for buying back lease-end vehicles. Dealerships will usually list the lease returns certified for resale. Manufacturers will often demand that dealerships sell certified vehicles to meet certain quarterly requirements.

Keep it Local

  • Most used car buyers like to know where their used car was before they are buying it. A used car that was owned locally and only by one other owner will have a big advantage to a potential buyer over a similarly equipped vehicle found elsewhere with two or three owners.

The Costco Method

  • Dealerships will sometimes be able to buy vehicles for less than their residual values if they purchase a set number of lease returned vehicles at once. Remember the banks want these cars sold as quickly as possible after they return off lease. Storage fees can add up quickly.

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  • Photo Credit Image by Flickr.com, courtesy of Sabrina Mae
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