How to Calculate a Lease Buyout

2022 Toyota Mirai driving on mountain highway


 

If you’re satisfied with your leased vehicle and wondering if you can buy it before the lease term is over, you’re in luck!  This is called a lease buyout, and we’re happy to help you do it at our finance center. Below, we share our top tips for buying out your car lease and how to calculate a car lease buyout so that you can get the best deal possible in Old Saybrook.

Is a Toyota Lease Buyout Worth It?

First, you need to find out how much buying out your car lease will cost. When checking your monthly statements, you might run across a section that says “buyout amount” or “payoff amount”. This amount includes the residual value of your vehicle at the beginning of your lease, the remaining payments, and a car purchase free.

If you can’t find this value on your statement, you can learn how to calculate a lease buyout yourself. To do so, follow these steps:

  1. Determine the Residual Value: This information was calculated at the start of the lease and can be found in your lease contract. The value is the estimated future value of the vehicle by the end of the lease contract.
  2. Determine the Actual Value: Due to depreciation, your vehicle may have decreased in value since your lease began. Use our trade-in tool at Westbrook Toyota to easily determine the current value of your vehicle.
  3. Compare Both Values: If the residual value is less than the actual value, then buying out your lease may be beneficial. If it’s not, then you could possibly negotiate the price with your local Madison dealership.
  4. Consider License and Registration Fees: Buying out your car lease means transferring your ownership costs from the leasing company to you. These costs include title transfer, licensing, and registration.
  5. Account for Sale Tax: You’ll also want to consider the local sales tax rate when buying out your car lease.

When is the Right Time for Buying Out Your Car Lease?

When calculating your lease buyout amount, you should know the difference between a lease-end buyout and an early lease buyout. Here’s what you should keep in mind when deciding on the right time for buying out your car lease:

  • Lease-End Buyout: The closer you are to the end of your lease, the better a buyout you’ll be able to negotiate. A dealer may offer you a better deal to keep the vehicle if they believe you plan on selling it back to them.
  • Early Lease Buyout: If you try to end your lease contract too early, you don’t have a lot of power in your negotiation. The dealer has the advantage if you try to end your lease too early due to vehicle wear or exceeding the mileage.

Learn more about how to calculate a lease buyout and other car-buying tips at Westbrook Toyota near Clinton.

Calculate Your Lease Buyout at Westbrook Toyota

If you’re looking for a lease buyout calculator or more info about the benefits of buying out your auto lease, we can help! Contact our finance center to speak with an auto finance professional today.

Westbrook Toyota 41.2907604, -72.4422888.