Report: Millennials & Gen Z Driving Surge in Lease Buyouts Amid Rising Car Costs

Lease End—a company that helps drivers with the lease buyout process—released its From Leased to Loved: Annual Lease Buyout Report, analyzing the latest trends in consumer automotive lease buyout behavior. With leases surpassing mileage limits by an average of 3,000 miles year-over-year and younger generations increasingly opting to buy rather than lease or purchase a new vehicle, the report highlights how rising costs and evolving driving habits are reshaping the lease buyout landscape.

“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. “With rising new car prices and monthly lease payments over $700, consumers are recognizing that buying out their lease isn’t just a fallback option—it’s often the smartest financial move. Beyond that, it’s also about keeping a car they know and trust, avoiding the hassle of starting over, and securing a vehicle they’re already comfortable with at a price that makes sense. This shift reflects a changing mindset around vehicle ownership, where drivers are prioritizing long-term value and financial strategy over simply upgrading to something shiny and new.”

This report analyzes who is buying out their leases, why it makes financial sense and what’s next for the industry in 2025. It covers the latest trends shaping consumer behavior, including who is buying out their leases, what makes and models are the most popular for lease buyouts, average equity retained, trends in equity and finance terms, and how market conditions are influencing these decisions.

Key findings from the Lease Buyout Report include the following:

• Millennials & Gen Z Are Leading the Shift Toward Lease Buyouts: 53% of lease buyouts were made by drivers aged 45+, while nearly 47% of lease buyouts were from younger drivers, signaling a shift toward leveraging lease equity to offset rising car prices and payments.
• Consumers Are Driving More and Paying for It: Lease-end mileage averages reached 37,000 miles, up 3,000 miles from 2023, with Range Rover Velar drivers exceeding limits by 8,000 (which would equate to $800-$2,400 in fees if not for lease buyouts)—a clear sign that driving has rebounded post-pandemic, with further increases expected as return-to-office mandates rise.
• SUVs Dominate Lease Buyouts: SUVs accounted for 60% of all buyouts, with the Honda CR-V, Ram 1500 and Jeep Grand Cherokee among the most commonly purchased vehicles—further proof that when it comes to comfort, space and capability, Americans continue to favor larger vehicles built for both daily life and adventure.
• Average Finance Terms Lengthening: Year over year, drivers have opted to spread their payments over a longer loan term with a year-to-date average loan term of 72.2 months, which helps with the cost of living with a lower monthly payment.

The report highlights a growing trend: Leasing over and over is no longer always the most cost-effective option. As market conditions shift, drivers are looking for smarter ways to retain value and avoid unnecessary costs at lease end.