How to Calculate a Lease Buyout

Finance Paperwork with Glasses
 

People who lease a vehicle in Corunna often decide they like it so well that they want to keep it. Fortunately, there’s no need to wait until your lease expires to buy the car you like so much when you work with Slingerland Chrysler Dodge Jeep Ram FIAT. A lease buyout gives you an avenue to purchase it early. Of course, you’ll want to ensure you know what doing so will cost. If you’re wondering how to calculate your lease buyout, check out the steps outlined below to determine the cost in Owosso. 

 

 

Calculating Your Lease Buyout in 5 Easy Steps 

Check your monthly leasing statement first; it may provide your buyout amount, which includes the vehicle’s residual value at the beginning of the lease and, possibly, a car purchase fee. If you don’t have access to this information, calculate your buyout amount by using the following steps:

  • Calculate the vehicle’s residual value.

This information should be in your lease contract, an amount calculated at the beginning of the lease. This is the approximate future value at the time the lease comes to an end.

  • Calculate the vehicle’s actual value.

Use the Kelley Blue Book Value Your Trade resource to assess the vehicle’s current market value. This will help you account for any decrease in value from depreciation and wear and tear (note that the vehicle may not have decreased as much as you think if it was driven less than 12,000 miles a year).

  • Residual vs. actual value.

Ideally, you want your actual value to be higher than the residual value. If that’s not the case, consider negotiating with the dealer on purchase price. 

  • License and fees.

Figure how much you will owe in licensing, registration, and title transfer costs upon taking ownership of the vehicle. 

  • Sales tax.

You’ll also be due for local sales tax. Look for local sales tax rates on your local DMV website.

Always bear in mind that dealers generally have more leverage in an early-buyout situation. Thus, it may make more financial sense to be patient and opt for a better deal with an end-of-lease buyout in the St. Johns region. 

Rely on Slingerland Chrysler Dodge Jeep Ram FIAT for More Automotive Tips

Make certain you go into such an arrangement understanding everything involved and knowing what it’s going to cost you. If you’re wondering how to calculate a car lease buyout, our finance department near Flushing can help you work through some of the finer points of this process. Use our handy loan calculator to plan your next vehicle purchase or buyout and, if you’re looking for financing, remember that you can apply via our website. 

 

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