How to Calculate a Lease Buyout

If you’ve had a car lease around Schaumburg and have decided to buy said vehicle, Biggers Chevrolet can help. Learn how much you’ll be paying by reading our guide on how to calculate the car lease buyout. When you have additional questions, reach out to our finance staff!

Buying Out Your Lease: Is it Worth It?

Curious about how to calculate a lease buyout? It’s important to understand what this involves. You’ve probably seen the phrase, “Buyout Amount” or “Payoff Amount” in your monthly leasing statement. 

This buyout amount includes the residual value of your vehicle at the start of the lease, your total remaining payments, and potentially a car purchase fee. If you don’t see this on your statement, or you want to do your research on car lease buying, follow these steps:

Determine The Vehicle’s Residual Value

This can be found in your lease contrast, as it was calculated at the start of the lease. This value is known as the estimated future value of the vehicle by the time your lease contract ends.

Determine Your Vehicle’s Actual Value

All vehicles decrease in value from when they’re first purchased, due to unavoidable depreciation, or from usual wear and tear. Even if you’ve driven your vehicle less than 12,000 miles per year like most Streamwood drivers, it might not have decreased as much as you imagined. Use our value your trade tool to assess your model’s current value.

Compare Residual vs. Actual Value

One important aspect when it comes to how to calculate a lease buyout is comparing values. If your actual value is higher than the residual value from your lease contrast, purchasing the vehicle might be a great option. If not, you can negotiate with the dealer on the purchase price.

Account For License and Registration Fees

If you purchase the vehicle you’ve been leasing, certain ownership costs are transferred from the leasing dealership to you. This includes the title transfer costs, licensing, and registration fees. You can learn about the fees on your local DMV site, and check any potential fees. 

Account For Sales Tax

There will be a local sales tax rate when you buy out your vehicle, which can also be found on your DMV site or a local government website.

Lease-End Buyouts vs. Early Lease Buyouts

Beyond how to calculate the car lease buyout, it’s important to know the buyouts you can choose from:

• Lease-End Buyouts: If you’re close to the end of your lease, you can potentially negotiate a better buyout. 
• Early Lease Buyout: You won’t have much wiggle room negotiating the purchase price if you plan to end your lease agreement early. As a result, the lender will have more leverage if you opt out of your lease early.

Rely on Biggers Chevrolet for More Automotive Tips

Whether learning how to calculate the car lease buyout or learning about the best breweries in Elgin, Biggers Chevrolet is your go-to dealership. Explore all your lease-end options with us and browse our inventories to see if something catches your eye.