Decision · Lease end · Quebec
Your lease is ending: buy out, return or trade in?
When your lease ends, you have three options. The right one depends on two numbers — the buyout value set in the contract and the vehicle's actual value — and on an inspection governed by law for contracts signed since April 5, 2024.
By Félipe Carbone, Used Vehicle Specialist
The last months of a lease raise a question worth several thousand dollars: return the vehicle, buy it out, or trade it in? The answer isn't in the ads or in habit — it's in two numbers you already have, and in an inspection the law regulates more strictly than many people think.
Reread the contract first
Everything starts with the lease contract. Most long-term leases in Quebec are leases with an option to buy — that clause is what lets you purchase the vehicle at the end of the term, for an amount set in advance, often called the residual value. According to Quebec's consumer protection office (OPC), a buyout requires that the contract contain such an option or a guaranteed residual value: no clause, no right to buy.
Look for three things: the buyout price, the fees tied to the buyout if there are any, and the kilometre limit along with the cost of going over it. Those three lines decide almost everything.
The end-of-lease inspection — governed by law since April 2024
For lease contracts signed since April 5, 2024, the lessor must offer you a free inspection of the vehicle: offered at least 90 days before the end of the contract, carried out between 60 and 30 days before, with a written report handed over immediately afterwards. That report identifies the parts or components showing abnormal wear — and you keep the right to have those items repaired by whomever you choose.
The rule has teeth: for these contracts, abnormal wear charges cannot be claimed from you if that inspection wasn't offered to you by the book, report included. Normal wear, for its part, is not billable. The official details are set out by Quebec's consumer protection office (OPC).
Is your contract from before April 5, 2024? That inspection regime doesn't apply to it. The equivalent precaution is still within reach: have an independent mechanic assess the vehicle's condition before you return it, so you know ahead of time what could be charged to you.
Option 1: return the vehicle
The simple route — provided you arrive prepared. The inspection report tells you in advance what will count as abnormal wear: having those items fixed yourself, wherever you like, often costs less than paying the lessor's rate. Check the mileage too: going over is charged at the rate set in the contract, and you can see it coming months ahead.
Option 2: buy out the vehicle
The buyout wins when the vehicle's market value exceeds the purchase option price. You know this vehicle better than any used vehicle on the market: its history, its maintenance, its winters. Add to the math the buyout fees set in the contract, the sales tax on the option price, and — if you finance the buyout — the financing terms available for this type of transaction.
Conversely, if the market values the vehicle below the purchase option, buying it out means paying more than the market price: returning or trading in becomes the logical route.
Option 3: use your equity toward your next vehicle
When the market value is well above the buyout price, that difference — the equity — can serve as a down payment on your next vehicle, depending on the terms of your contract and your lessor. It's the least-known of the three routes, and the easiest to put a number on, in two steps: know your buyout price (it's in the contract) and get an appraisal of the vehicle's actual value. Our guide to maximizing the value of a trade-in applies to a leased vehicle too.
Decide with two numbers, not out of habit
The contractual buyout price on one side, the vehicle's actual value on the other: the gap between the two points to the best option. Market value above the buyout price: buy out or trade in. Market value below the buyout price: return the vehicle, using the inspection report to prepare. In all three cases, the calendar favours whoever gets started 90 days ahead — the moment when, for contracts signed since April 5, 2024, the law brings the inspection into play.
Frequently asked questions
Can the lessor charge me for normal wear on the vehicle?
No — the charges target abnormal wear, identified through a regulated process. For contracts signed since April 5, 2024, Quebec's consumer protection office (OPC) even specifies that abnormal wear charges cannot be demanded if the free end-of-lease inspection wasn't offered to you within the prescribed time frame, along with the written report that goes with it. For an earlier contract, have the vehicle independently assessed before returning it.
Can I buy out the vehicle from any lease contract?
No. A buyout requires that your contract contain a purchase option or a guaranteed residual value clause. Most long-term leases in Quebec are leases with an option to buy — but the contract is what counts, not common practice.
Two numbers decide, and you already have one
The buyout price is written in your contract. We'll tell you what your vehicle is worth.
