Car Lease Buyout and Security Deposit

  • Last Updated:
  • Mar 29th, 2022 1:40 am
Deal Addict
Jul 22, 2019
2568 posts

Car Lease Buyout and Security Deposit

If someone has a car lease, they put down a refundable security deposit (at start of lease). If I buy out their car lease, who gets the refundable security deposit back? OWner or leasebuyout? Or is that $500 "refundable security deposit" baked into the residual?
2 replies
Deal Expert
User avatar
Jul 30, 2007
32218 posts
Once the lease is transferred to new owner, the new owner is responsible for all damages, wear and takes over the security deposit. You can double check with the finance services customer rep. When doing the application
Deal Guru
User avatar
Jul 12, 2003
12362 posts
The party who take over the lease agreement takes everything from the lease contract.

If you are the leasee and the agreement has refund security deposit on it, you can get the money back (given no penalty charge by the Finance company upon lease return), or if you are buying out the car, that security deposit will use as a "credit" when you pay the balance of the buy back amount.
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