Use this calculator to estimate the total cost of purchasing your leased vehicle at the end of its term. This helps you understand the financial commitment involved in exercising your lease buyout option.
Estimated Buyout Details:
Sales Tax Amount: $0.00
Total Estimated Buyout Cost: $0.00
Understanding Your Lease Buyout
A lease buyout allows you to purchase your leased vehicle at the end of your lease term, or sometimes even before. This can be an attractive option if you love your car, have kept it in excellent condition, or if its market value is significantly higher than the residual value stated in your lease agreement.
Key Components of a Lease Buyout:
Residual Value: This is the predetermined value of the vehicle at the end of the lease term, as specified in your original lease contract. It's essentially the price you agreed upon to buy the car for at the lease's conclusion.
Purchase Option Fee: Some lease agreements include a small administrative fee for exercising your option to purchase the vehicle. This fee is typically outlined in your lease contract.
Sales Tax: In most states, sales tax will be applied to the purchase price of the vehicle, which is usually the residual value plus any purchase option fee. The tax rate varies by location.
Registration & Title Fees: When you buy out your lease, you're transferring ownership from the leasing company to yourself. This process involves standard state-mandated fees for vehicle registration and obtaining a new title in your name.
Other Fees: Depending on the dealership or leasing company, there might be additional documentation fees, processing fees, or other miscellaneous charges associated with the buyout. It's crucial to ask for a detailed breakdown of all costs.
When to Consider a Lease Buyout:
You love the car: If you're emotionally attached to your vehicle and it meets all your needs, buying it out can be simpler than finding a new car.
Low mileage: If you've driven significantly less than your allotted mileage, the car might be worth more than its residual value, making a buyout a good deal.
High market value: If the current market value of your vehicle is substantially higher than its residual value, buying it out can save you money compared to purchasing a similar used car.
Excellent condition: If your car is in pristine condition and you want to avoid potential excess wear and tear charges, a buyout eliminates that concern.
Avoid disposition fees: Buying out your lease means you won't have to pay the lease disposition fee, which is typically charged when you return a leased vehicle.
Important Considerations:
Always review your original lease agreement carefully to understand all terms and conditions related to a buyout. Contact your leasing company or dealership well in advance of your lease end date to get a precise buyout quote, as some fees might not be immediately obvious. Factor in potential financing costs if you plan to take out a loan to cover the buyout amount.