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.

Lease Buyout Decision

Understanding the Lease Buyout Option At the end of a car lease, you typically have three options:

  1. Return the car and lease or buy a new one
  2. Buy out the leased car at the pre-agreed residual value
  3. 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.


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This calculator runs entirely in your browser, so the numbers you enter stay on your device. The math behind it is written by hand and tested against worked examples and standard references before the page goes live.

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