Enter your lease's Residual Value, Current Market Value, Interest Rate, and Loan Term to find out your Monthly Payment, Total Cost to Own, and Immediate Equity — plus a Recommendation on whether buying out your lease actually makes financial sense.
Monthly Payment
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Total Cost to Own
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Immediate Equity
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Total Interest Paid
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Recommendation
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Your residual value (buyout price) is listed in your original lease agreement, usually in a section about purchase options. You can also call your leasing company to confirm the exact amount.
Generally yes, if the market value exceeds your residual value, you have instant equity. However, also consider the car's condition, your financing options, and whether you actually want to keep the vehicle long-term.
If the market value is significantly lower than your buyout price, it may be better to return the car to the dealer and walk away, assuming you haven't exceeded mileage limits or have excessive wear charges.
The residual value is typically non-negotiable as it was set at the beginning of your lease. However, some dealers may offer incentives or deals, especially if they want to move inventory.
Beyond the residual value, expect to pay sales tax, title and registration fees, documentation fees, and potentially an acquisition or disposition fee. These can add $500-2000 to your total cost.
Lease buyout loans are similar to used car loans. You may get slightly higher interest rates than new car loans, but the process is essentially the same. Shop around with banks, credit unions, and online lenders.
You simply return the car to the dealer at lease end. However, you'll be charged for excess mileage (typically $0.15-0.30 per mile) and excessive wear and tear beyond normal use.
In most cases, you can sell your leased vehicle to a third party or dealer. If the sale price exceeds your buyout amount, you keep the difference. This can be a good option if you don't want to keep the car but it has positive equity.