Millennials and Gen Z are fueling a shift in the auto industry as they increasingly opt to buy out their leased vehicles rather than start over with a new lease or purchase, according to Lease End’s newly released 2025 Lease Buyout Report.
The report revealed nearly 47% of lease buyouts in 2024 were completed by drivers under age 45. Rising new vehicle prices and average monthly lease payments exceeding $700 have made lease buyouts a more appealing financial move for many consumers.
“The data confirms what we’ve been seeing firsthand -- drivers, especially Millennials and Gen Z, are taking a more strategic approach to leasing,” said Zander Cook, co-founder and CRO of Lease End, in the release. “Buying out their lease isn’t just a fallback option -- it’s often the smartest financial move.”
Lease End’s analysis of 14,235 lease buyout transactions nationwide shows that this trend is not only generational but also closely tied to evolving driving habits. The average lease-end mileage climbed to 37,000 miles in 2024, up 3,000 from the previous year. In some cases, such as with the Range Rover Velar, drivers exceeded lease limits by 8,000 miles, potentially incurring $800 to $2,400 in overage fees, which can be avoided through a buyout.
SUVs continued to dominate buyout preferences, making up 60% of all transactions. The Honda CR-V, Ram 1500 and Jeep Grand Cherokee were among the most commonly purchased models.
Additionally, the report found average loan terms for lease buyouts are lengthening, with drivers increasingly choosing 72-month financing to reduce monthly payments and manage living costs.
“We’ve reached a turning point where lease buyouts are no longer just a niche financial decision,” Cook added. “More consumers are realizing that buying out their lease could save them thousands.”
As vehicle prices remain high and economic uncertainty continues, the report suggested lease buyouts are becoming a mainstream strategy for drivers seeking long-term value, stability and cost savings in a changing automotive landscape.
