Car Lease Buyout Calculator
Decide whether to buy out your leased car at lease-end or return it.
Compare the buyout price to market value and financing costs.
Understanding the Lease Buyout Option At the end of a car lease, you typically have three options:
- Return the car and lease or buy a new one
- Buy out the leased car at the pre-agreed residual value
- Walk away entirely
The residual value is set at the beginning of the lease and may not reflect actual market conditions at lease-end.
When a Buyout Makes Sense If the market value of your car exceeds the residual (buyout) price, you have built-in equity. Buying the car is like getting an instant discount vs. buying the same vehicle on the open market.
Equity = Market Value - Residual Value Positive equity = buyout price is below market value → consider buying
Return Fees Most leases charge a disposition fee ($300-$500) when you return the car. Excess mileage fees typically run $0.15-$0.25 per mile over the limit. Excessive wear-and-tear charges can add hundreds more. These fees make the effective cost of returning higher than the disposition fee alone.
Financing the Buyout Monthly Payment = P × r(1+r)^n / ((1+r)^n - 1) Where P = residual value, r = monthly rate, n = loan term in months
Tax Consideration In many states, buying out a leased vehicle triggers sales tax on the full residual value. Check your state rules — this can add thousands to the buyout cost.