Car Lease Buyout Calculator
Thinking about keeping your leased car instead of returning it? Don’t let dealers or credit unions pressure you into a decision without knowing the real numbers. Our auto lease buyout calculator shows you exactly what it costs to purchase your leased vehicle versus walking away, so you can make the choice that saves you money.
Most people have no idea whether their lease buyout makes financial sense. Dealers love this confusion because it lets them steer you toward whatever option makes them the most profit. Use our car lease buyout calculator to cut through the sales pitch and see the cold, hard math behind your decision. Once you’ve figured out what you can afford, our team of Los Angeles car lease brokers will help you find the perfect vehicle match.
Disclaimer
This calculator provides estimates only and should not be considered exact buyout quotes. Actual lease buyout costs can vary significantly based on numerous factors including your specific lease agreement terms, state and local tax rates, DMV fees, title transfer costs, early termination penalties, excess wear and tear charges, mileage overage fees, disposition fees, purchase option fees, financing availability, interest rates offered, down payment requirements, and individual credit profile.
Market values fluctuate daily and may differ from estimated residual values. Some leasing companies may charge additional administrative fees not reflected in this calculator. Always verify final buyout terms directly with your leasing company and obtain written quotes before making any financial commitments. Consult with financial advisors and tax professionals regarding the implications of your decision.
California Lease Buyout Guide: Compare the total cost of buying out your lease versus returning it and getting a new car. Consider the vehicle's current market value, remaining payments, and financing costs to make the smartest decision.
How Our Lease Buyout Calculator
Estimates Your Monthly Payment
The math behind lease buyouts isn’t complicated, but leasing companies make it seem mysterious to keep you guessing. Our calculator breaks down every cost so you can see exactly where your money goes and whether the deal makes sense.
Here’s how we calculate your true buyout cost using a real Los Angeles example. Say you’re driving a leased BMW with a $22,000 residual value, 4 payments of $520 remaining, and you’re considering financing the buyout at 6.5% APR over 36 months with no down payment.
Step 1: Calculate Your Total Buyout Cost
Start with your residual value and add California’s sales tax. In LA County, you’ll pay 10.25% tax on the $22,000 buyout price, adding $2,255 to your cost. Your total buyout becomes $24,255.
Step 2: Compare Against Remaining Lease Obligations
You still owe 4 payments of $520, totaling $2,080. This is money you’ll spend whether you buy the car or return it, so factor this into your decision.
Step 3: Calculate Financing Costs
If you finance the $24,255 buyout over 36 months at 6.5% APR, your monthly payment becomes $742. Over the loan term, you’ll pay $2,457 in interest, bringing your total cost to $26,712.
Step 4: Determine Your True Total Cost
Add your remaining lease payments ($2,080) plus your financed buyout cost ($26,712) for a total investment of $28,792. Compare this against what you’d pay for a similar vehicle elsewhere to see if the buyout makes financial sense.
