How to Calculate a Lease Buyout

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Do you currently have a lease on a vehicle and want to buy out the lease? Then you’re in luck, because the finance center at Westbrook Toyota has put together a handy guide to show you exactly how you can do just that. Learn how to calculate a car lease buyout with the finance experts at Westbrook Toyota so you can get the best deal possible in Old Saybrook.

Is a Lease Buyout Worth It?

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 and want to learn how to calculate a lease buyout, then you’ll want to 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 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 you buy out your lease.

Lease-End Buyouts vs. Early Lease Buyouts

When learning how to calculate a car lease buyout, you’ll want to know the difference between a lease-end buyout and an early lease buyout:

Lease-End Buyouts: The closer you are to the end of your lease, the better 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

Now that you know how to calculate a car lease buyout, you can visit Westbrook Toyota to see what kind of deal you can get. Contact us to answer any of your car-buying questions.