Lease Buyout Cost Calculator

Lease Buyout Formula:

\[ Buyout\ Cost = Residual\ Value + Remaining\ Lease\ Payments + Purchase\ Option\ Fee + Taxes - Security\ Deposit \]

Residual Value ($):

Remaining Lease Payments ($):

Purchase Option Fee ($):

Taxes ($):

Security Deposit ($):

Total Buyout Cost:

Unit Converter ▲

Unit Converter ▼

From:	To:

1. What is Lease Buyout Cost?

The lease buyout cost represents the total amount required to purchase a leased vehicle at the end of the lease term. It includes the residual value, remaining payments, purchase fees, applicable taxes, minus any refundable security deposit.

2. How Does the Calculator Work?

The calculator uses the lease buyout formula:

\[ Buyout\ Cost = Residual\ Value + Remaining\ Lease\ Payments + Purchase\ Option\ Fee + Taxes - Security\ Deposit \]

Where:

$ Residual\ Value $ — The predetermined value of the vehicle at lease end
$ Remaining\ Lease\ Payments $ — Outstanding monthly payments
$ Purchase\ Option\ Fee $ — Fee charged for exercising the purchase option
$ Taxes $ — Sales tax and other applicable taxes
$ Security\ Deposit $ — Refundable deposit made at lease inception

Explanation: This calculation helps lessees understand the total financial commitment required to purchase their leased vehicle.

3. Importance of Buyout Cost Calculation

Details: Calculating the buyout cost is essential for making informed financial decisions about whether to purchase the leased vehicle, return it, or explore other options.

4. Using the Calculator

Tips: Enter all dollar amounts in USD. Ensure you have accurate figures from your lease agreement for residual value, remaining payments, and fees.

5. Frequently Asked Questions (FAQ)

Q1: When should I consider a lease buyout?
A: Consider buying out your lease if the buyout price is lower than the vehicle's market value, or if you've grown attached to the car and want to keep it.

Q2: Are there additional fees not included in this calculation?
A: Yes, there may be additional fees such as documentation fees, registration fees, or inspection fees that vary by state and leasing company.

Q3: Can I negotiate the buyout price?
A: Typically, the residual value is set in the lease agreement and cannot be negotiated, but you may be able to negotiate other aspects of the purchase.

Q4: What happens to my security deposit?
A: Your security deposit is typically refunded and applied toward the buyout cost, reducing the total amount you need to pay.

Q5: Should I get the vehicle inspected before buying?
A: Yes, it's recommended to have a pre-purchase inspection to identify any potential issues with the vehicle before committing to the buyout.