Lease-end decision guide
Compare lease buyout equity with return charges and replacement cost
A lease buyout is attractive when the vehicle is worth more than the all-in purchase price, but instant equity alone does not answer whether keeping the car is cheapest. Financing, depreciation, repair risk, selling costs, and the cost of the replacement belong in the same horizon.
Use a written payoff or buyout quote, a realistic private-party or trade-in value, and the lease inspection estimate. Tax treatment and third-party sale restrictions vary by state and lessor.
How to use this tool
Get the all-in buyout quote
Enter residual value, sales tax, purchase-option fees, registration, and financing charges.
Estimate return charges
Include disposition, excess mileage, tires, glass, body, and interior wear.
Use one comparison horizon
Choose when you expect to sell or replace the vehicle so each strategy covers the same period.
Stress-test market value
Move the market-value adjustment and ownership-cost difference to see whether the recommendation survives uncertainty.
Instant equity and an immediate sale
Instant equity equals market value minus residual, tax, and buyout fees. The sell-after-buyout result also deducts the entered resale transaction cost. Confirm that the lessor permits the transaction and whether title, tax, or holding rules create additional cost.
Financing changes both cash flow and equity
The financed option discounts loan payments and subtracts remaining debt from projected resale value at the common horizon. A lower monthly payment can still produce a higher total present-value cost.
Ownership-cost difference
- Enter keeping-car maintenance and repair cost minus the replacement option.
- Include warranty coverage, insurance, registration, and fuel differences when material.
- Use a negative value if keeping the leased vehicle is expected to cost less each year.
- Do not count a cost twice when it is already built into a replacement lease payment.
Obtain written buyout, tax, inspection, and financing figures. This estimate does not override lease terms or predict future vehicle value and repair costs.
Frequently asked questions
Is positive lease equity enough reason to buy?
No. It is a useful starting point, but taxes, fees, repair risk, financing, resale costs, and replacement transportation can change the decision.
Can I buy the lease and sell it immediately?
Possibly, but lessor policies, title processing, state tax, and third-party sale restrictions vary. Confirm the actual transaction steps first.
Should I pay cash or finance the buyout?
Compare the present value of payments and terminal equity, then consider liquidity. The calculator uses the same resale horizon for both.
How should I estimate future value?
Start with several current local quotes and a conservative annual depreciation rate, then test lower market-value scenarios.