Auto Lease Buyout Calculator

Auto Lease Buyout Calculator

Use this calculator to estimate the total cost of buying out your leased vehicle, either at the end of your lease term or early. This includes the residual value, any remaining payments, fees, and applicable taxes.

function calculateLeaseBuyout() { // Get input values var residualValue = parseFloat(document.getElementById("residualValue").value); var remainingPayments = parseFloat(document.getElementById("remainingPayments").value); var purchaseOptionFee = parseFloat(document.getElementById("purchaseOptionFee").value); var salesTaxRate = parseFloat(document.getElementById("salesTaxRate").value); var registrationTitleFees = parseFloat(document.getElementById("registrationTitleFees").value); var otherFees = parseFloat(document.getElementById("otherFees").value); // Validate inputs if (isNaN(residualValue) || residualValue < 0) { document.getElementById("result").innerHTML = "Please enter a valid Lease Residual Value."; return; } if (isNaN(remainingPayments) || remainingPayments < 0) { document.getElementById("result").innerHTML = "Please enter a valid amount for Remaining Lease Payments."; return; } if (isNaN(purchaseOptionFee) || purchaseOptionFee < 0) { document.getElementById("result").innerHTML = "Please enter a valid Purchase Option Fee."; return; } if (isNaN(salesTaxRate) || salesTaxRate < 0) { document.getElementById("result").innerHTML = "Please enter a valid Sales Tax Rate."; return; } if (isNaN(registrationTitleFees) || registrationTitleFees < 0) { document.getElementById("result").innerHTML = "Please enter valid Registration & Title Fees."; return; } if (isNaN(otherFees) || otherFees < 0) { document.getElementById("result").innerHTML = "Please enter valid Other Buyout Fees."; return; } // Calculations var subtotalBeforeTax = residualValue + remainingPayments + purchaseOptionFee + otherFees; // Sales tax typically applies to the residual value and sometimes the purchase option fee. // Remaining payments are usually already taxed or not considered part of the "purchase price" for tax purposes. var taxableAmount = residualValue + purchaseOptionFee; var calculatedSalesTax = taxableAmount * (salesTaxRate / 100); var grandTotalBuyoutCost = subtotalBeforeTax + calculatedSalesTax + registrationTitleFees; // Display results var resultHTML = "

Buyout Cost Estimate:

"; resultHTML += "Lease Residual Value: $" + residualValue.toFixed(2) + ""; resultHTML += "Remaining Lease Payments: $" + remainingPayments.toFixed(2) + ""; resultHTML += "Purchase Option Fee: $" + purchaseOptionFee.toFixed(2) + ""; resultHTML += "Other Buyout Fees: $" + otherFees.toFixed(2) + ""; resultHTML += "Subtotal (before tax & reg/title): $" + subtotalBeforeTax.toFixed(2) + ""; resultHTML += "Estimated Sales Tax (" + salesTaxRate.toFixed(2) + "%): $" + calculatedSalesTax.toFixed(2) + ""; resultHTML += "Registration & Title Fees: $" + registrationTitleFees.toFixed(2) + ""; resultHTML += "Grand Total Buyout Cost: $" + grandTotalBuyoutCost.toFixed(2) + ""; document.getElementById("result").innerHTML = resultHTML; }

Understanding Your Auto Lease Buyout

Deciding whether to buy out your leased vehicle can be a smart financial move, offering you the chance to own a car you're already familiar with. An auto lease buyout involves purchasing the vehicle from the leasing company, typically at the end of your lease term, but sometimes earlier. This calculator helps you estimate the total cost involved in this process.

Key Components of a Lease Buyout:

• Lease Residual Value: This is the most significant part of your buyout cost. It's the predetermined value of the vehicle at the end of your lease, as specified in your original lease agreement. This value is essentially what the leasing company expects the car to be worth when the lease concludes.
• Remaining Lease Payments: If you choose to buy out your lease before its scheduled end date, you will typically be responsible for paying the sum of all outstanding monthly payments. If you're buying at the very end of your lease, this amount will be zero.
• Purchase Option Fee: Many lease agreements include a small administrative fee, often a few hundred dollars, that you must pay to exercise your option to purchase the vehicle. This fee covers the lessor's costs associated with processing the sale.
• Sales Tax Rate: Just like buying any other vehicle, you'll need to pay sales tax on the purchase. This tax is usually calculated on the residual value of the vehicle and sometimes includes the purchase option fee, depending on your state's regulations. The rate varies significantly by state or local jurisdiction.
• Registration & Title Fees: When you buy out your lease, you're transferring ownership from the leasing company to yourself. This process incurs standard government fees for vehicle registration and obtaining a new title in your name.
• Other Buyout Fees: Be aware of any additional fees that might be charged by the leasing company or the dealership facilitating the buyout. These could include documentation fees, processing fees, or other administrative charges. Always review your lease agreement and discuss with the lessor or dealer.

When to Consider a Lease Buyout:

A buyout can be advantageous if:

• You love the car and want to keep it.
• The market value of the car is significantly higher than its residual value, meaning you'd be buying it at a discount.
• You've exceeded your mileage limits or have excessive wear and tear, and buying the car would be cheaper than paying the penalties.
• You want to avoid the hassle of finding a new car or negotiating a new lease.

Example Buyout Scenario:

Let's consider a typical scenario:

• Lease Residual Value: $25,000
• Remaining Lease Payments: $0 (buying at lease end)
• Purchase Option Fee: $350
• Sales Tax Rate: 7.5%
• Registration & Title Fees: $250
• Other Buyout Fees: $100

Using these figures:

Subtotal (Residual + Purchase Option Fee + Other Fees): $25,000 + $350 + $100 = $25,450

Taxable Amount (Residual + Purchase Option Fee): $25,000 + $350 = $25,350

Sales Tax: $25,350 * 7.5% = $1,901.25

Total Buyout Cost: $25,450 (Subtotal) + $1,901.25 (Sales Tax) + $250 (Registration & Title) = $27,601.25

This example demonstrates how various fees and taxes add up to the final buyout price. Always verify all figures with your leasing company or dealership before making a decision.