Lease Payoff Calculator

A lease buyout makes financial sense when the market value of the vehicle exceeds the buyout price. This means you have positive equity — you can either keep the car (and own it outright) or sell it for a profit.

Here are common situations where buying out your lease is worth considering:

• Positive equity: The car is worth more than the residual value plus fees. This has been especially common in used car markets with limited new car supply.
• You love the car: If you want to keep driving it beyond the lease term, buying out avoids disposition fees and the hassle of leasing a new vehicle.
• Excess mileage or wear: If you are over your mileage allowance or have significant wear, the penalties at lease return could exceed the cost of just buying the car.
• Avoiding a new payment: Once you buy out and pay off the car, you eliminate monthly payments entirely.

The total cost of a lease buyout includes more than just the residual value:

• Payoff amount: The residual value stated in your lease agreement (sometimes called the purchase option price). This may differ from the residual value used to calculate payments if there is an early buyout.
• Purchase option fee: Some leasing companies charge a $300-$500 fee to exercise the purchase option.
• Sales tax: You will owe sales tax on the buyout price in most states.
• Title and registration: Fees to transfer the title to your name and register the vehicle.

Add all these costs together to get the true buyout cost, then compare against the vehicle's current market value to determine your equity position.

To make an informed buyout decision, you need an accurate estimate of what your vehicle is currently worth:

• Kelley Blue Book (KBB): Use the "Private Party Value" or "Trade-In Value" depending on whether you plan to keep or sell the car.
• Edmunds: Provides appraised values based on condition, mileage, and options.
• CarGurus / Cars.com: Search for similar vehicles in your area to see actual asking prices.
• Carvana / Vroom: Get instant online offers that give you a concrete number for what a buyer would pay today.

Get values from multiple sources and use an average. Be honest about the condition and mileage of your vehicle for the most accurate estimate.