Lease buyout calculator: buy your leased car or hand back the keys?
Compare the buyout price in your contract with what the car is worth today. You will see whether the lease has equity, what keeping the car costs all-in, and the payment if you finance the buyout.
How this lease buyout calculator works
Equity is what the car is worth today minus what it costs to buy it out: the buyout price plus any purchase option, title and registration fees. Use real offers for the value, such as instant offers or a written dealer quote, not the asking price of a similar car on a lot.
Sales tax is shown in the cost of keeping the car but left out of the equity figure, because you would pay tax on any used car you bought instead. A difference of $1,000 or less either way is called a close call.
If you enter a loan rate, the calculator also prices a loan for the full cost of keeping the car, including tax and fees, over the term you choose.
Worked example
Say your buyout price is $21,500 with $450 in purchase and title fees, and two instant offers for the car come in around $24,000. The lease has about $2,050 of equity.
Keeping the car costs about $23,294 all-in with 6.25 percent sales tax. Financed over 48 months at 7.5 percent, that is about $563 a month.
If you would rather not keep it, a buyer that pays off the lease could hand you most of that $2,050. That is the case worth checking before you simply turn the car in and walk away from the equity.
Your three choices at lease end
- Buy it out, when the buyout is below market value and you want to keep the car.
- Sell it to a dealer or instant-offer buyer, when the lease has equity but you want something else. Ask the leasing company first whether third-party buyouts are allowed.
- Turn it in, when the buyout is above market value. Read the turn-in charges in your contract (disposition fee, extra miles, wear and tear) before the inspection.
More on each path: lease end equity and buyout math, how to buy out your lease early without overpaying, the lease end 90 day playbook and how to spot dealer lease end tricks. Already decided to buy? Compare the payment with your other options in sell or keep and lease vs buy.
FAQ
How is a lease buyout price calculated?
At the end of the lease it is usually the residual value written into your contract, plus any purchase option fee the contract lists. Buying out early usually costs more, because the remaining payments or the payoff balance are added. Ask the leasing company for an exact payoff quote and use that number above.
Do you pay sales tax on a lease buyout?
In many states, yes, because buying the car out is a purchase. Rules differ by state, so check with your state's tax or motor vehicle agency, and put the rate in the calculator to see the full cost.
Can I negotiate my lease buyout price?
Usually not much, because the residual is fixed in the contract. What you can often control are the extras: ask the leasing company whether you can buy directly from them, and question any dealer fees added on top of the contract price.
Can a dealer or Carvana buy out my lease?
Sometimes. A buyer that pays off the lease can hand you any equity, which is the easiest way to cash in a lease worth more than its buyout. Some leasing companies limit buyouts by third-party dealers, so ask yours who is allowed to buy the car before you collect offers.
Is it smart to buy out a car lease?
It is when the buyout is below what the car is worth and the car has been reliable, because you get a known car under market price. It is not when the buyout is above market value, unless you value this exact car more than the money.