1. What is a Lease Buyout?

A lease buyout is the process of purchasing the leased vehicle at the end of the lease term. The buyout amount typically consists of the residual value plus any applicable fees.

2. How Does the Calculator Work?

The calculator uses the simple buyout formula:

Where:

• \( RV \) — Residual value of the vehicle at lease end
• \( Fees \) — Any additional purchase fees

Explanation: The residual value is predetermined in your lease contract, while fees may include purchase option fees, documentation fees, or other charges.

3. Importance of Buyout Calculation

Details: Calculating your exact buyout amount helps you make informed decisions about whether to purchase the vehicle, negotiate with the dealer, or explore other options.

4. Using the Calculator

Tips: Enter the residual value from your lease agreement and any additional fees you may be charged. Both values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: Where do I find my residual value?
A: The residual value is specified in your original lease agreement. You can also contact your leasing company for the current buyout amount.

Q2: What fees are typically included?
A: Common fees include purchase option fees ($200-$500), documentation fees, and possibly sales tax depending on your state.

Q3: Is buying out my lease always the best option?
A: It depends on the vehicle's market value compared to your buyout price. Research the current market value before deciding.

Q4: Can I negotiate the buyout price?
A: Typically no - the residual value is fixed in your contract. However, you may negotiate fees with the dealer in some cases.

Q5: When should I decide about buying out my lease?
A: Start evaluating options 3-6 months before lease end to allow time for research and decision making.