How to Calculate a Lease Buyout

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When a car lease term ends, the lessee has a number of options. They can return the vehicle and walk away, choose another vehicle, or buy the leased car outright. If you have a car lease and are considering the latter, you may be wondering how to calculate a lease buyout. Aston Martin Austin can help you determine how much you’ll pay using the steps outlined below. Don’t hesitate to contact us if you have questions along the way!

Steps to Calculating a Lease Buyout

When you receive your monthly leasing statement, you may see a “Buyout Amount” or “Payoff Amount” on the statement. This amount includes the residual value of the car when the lease term began, the amount of payments remaining, and a car purchase fee (this may not be included, depending on the company). Can’t find the amount on your paperwork, or would you prefer to research lease buying yourself? Take the following steps:

  1. Determine the car’s residual value
    The residual value is the car’s estimated future value by the end of the lease contract, and was calculated when the lease term started. You can find the car’s residual value on the lease contract.
  2. Determine the car’s actual value
    Because of depreciation and wear and tear, your car’s value may have decreased. On the flip side, if you’ve driven the car under 12,000 miles per year, the depreciation may be less than you think. Kelley Blue Book Value Your Trade is a great tool for finding out how much a car is really worth on today’s market.
  3. Compare the residual vs. actual value
    If the car’s actual value is greater than the residual value given on your lease contract, buying might be worthwhile. If the car’s actual value is lower, there’s a chance you can negotiate with the dealership.
  4. Keep license and registration fees in mind
    When you purchase a car you’ve leased, transfer costs, registration fees, and license fees become your responsibility. Check the Texas DMV site, then contact your leasing company to learn more about the fees associated with lease buyouts.
  5. Keep sales tax in mind
    Lease buyouts come with a local sales tax rate, which you can learn more about on the Texas DMV or Texas.gov site.

Learn More About Lease Buyouts from Aston Martin Austin!

Do you have additional questions about how to calculate a car lease buyout? The finance center at Aston Martin Austin can answer! Contact us online or visit us near Dallas and Houston, and we’ll assist you with everything from applying for financing to getting the best possible rates and terms on your loan. Did you know you can shop online with us for your new car? Find out how the virtual buying process works to learn more today!

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