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How to Calculate a Lease Buyout

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Ready to buy out your current lease in Fond du Lac? Whether your lease agreement has reached the end of its term or you want to purchase your lease early, Holiday Automotive has answers to all your leasing questions. Learn how to calculate a car lease buyout with these helpful car buying tips!

Lease Purchase: Is it Worth It?

If you’re considering a lease purchase, it’s important to understand the current value of your vehicle in Oshkosh. Your monthly leasing statement may include a buyout or payoff amount total, which is an estimate of its residual value plus the total remaining payments. If you don’t have access to this information, or if you want to calculate on your own to compare, use these steps:

  1. Determine the residual value of the vehicle.
    Your vehicle’s residual value is an estimate of what your car’s value will be at the end of your contract. It was calculated at the start of your term and should be found in your contract.
  2. Determine the actual value of the vehicle.
    Depending on depreciation, wear and tear, and accumulated mileage in Sheboygan, your vehicle’s actual value may be more or less than estimated by your lease. Value your trade to see what your car is currently worth.
  3. Compare the residual value and the actual value.
    Compare your actual value against your residual value. If the actual value is higher, a lease purchase may be a smart investment for you.
  4. Account for license and registration fees.
    An important factor in how to calculate a car lease buyout includes additional contract fees, such as transfer costs, registration fees, and licensing. Your state’s DMV site will list some of these details, but you’ll need to contact your leasing company to learn of their fees.
  5. Account for sales tax.
    Your lease purchase will also include the local sales tax rate, so check your state government or DMV site for the exact rate.

Lease-End Buyouts vs. Early Lease Buyouts

Lease-End Buyouts: The best time to negotiate a lease buyout is near the end of your term, as dealers will be more motivated to have you keep the vehicle rather than give it back.

Early Lease Buyout: If you still have a ways to go in your lease term, it will be harder to negotiate. The dealer will need to factor in wear and tear, and mileage limits in West Bend, giving them more leverage.

Get Leasing Questions Answered at Holiday Automotive

Need more help on how to calculate a car lease buyout or estimated future car lease payments? Holiday Automotive can guide you through the process with our knowledgeable finance team. Contact us to get started today!

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