How to Calculate a Lease Buyout

Man Writing in a Book

If you have a car lease in Boca Raton or Delray Beach and you’ve decided you want to buy your leased car, Land Rover Palm Beach can help. Find out how much you’d be paying by checking out our guide on how to calculate car lease buyouts on leased vehicles, and be sure to contact us if you have any questions!

Buying Out Your Lease: Is it Worth It?

You may see a Buyout Amount or Payoff Amount listed in your monthly leasing statement. This buyout amount includes the residual value of your vehicle at the start of the lease, the total remaining payments, and possibly a car purchase fee (depending on the leasing company). If you don’t have this value listed anywhere, or you prefer to do your own research on your lease buying, follow the steps below:

  1. Determine the residual value of the vehicle.This information will be found in your lease contract, as it was calculated at the beginning of the lease. This value is the estimated future value of the vehicle by the time the lease contract ends.
  2. Determine the actual value of the vehicle. Your car may have decreased in value from when the lease began, due to unavoidable depreciation, or any wear and tear from driving. Or, if you’ve driven your vehicle less than the average 12,000 miles per year, it may not have decreased in value as much as you’d think. Use a service like the Kelley Blue Book appraisal tool or other Value Your Trade tool to assess the current market value of your car.
  3. Compare the residual value and the actual value. If the actual value ends up being higher than the residual value from your lease contract, then purchasing your vehicle might be a good deal. If not, you may be able to negotiate with the dealer on the purchase price.
  4. Account for license and registration fees. If you buy the car that you’ve been leasing, that means that certain costs of ownership are transferred from the leasing company to you. This includes title transfer costs, licensing, and registration fees. You can learn more about the fees on your state motor vehicle site, and check with your leasing company for any of their fees.
  5. Account for sales tax. There is a local sales tax rate when you buyout your vehicle, which you may also find on your DMV site or state government website.

Lease-End Buyouts vs. Early Lease Buyouts

Lease-End Buyouts: If you are at or near the end of your lease, you will probably be able to negotiate a better buyout. If the dealer thinks you are planning on selling it back to them, they may offer you a better deal to keep the vehicle. Early Lease Buyout: You won’t really have much wiggle room negotiating the purchase price if you are trying to end your lease agreement early. Whether due to too much vehicle wear and tear or danger of exceeding the mileage limits, the dealer knows they have more leverage in the situation if you are trying to prematurely end your lease.

Rely on Land Rover Palm Beach For More Automotive Tips

If you have questions about lease buyout loans or auto loan interest rates, and more, contact your local authorized Land Rover Finance Center. You can also use our handy loan calculator tool to plan your next vehicle purchase or buyout!

More from Land Rover Palm Beach

  • 2020 Land Rover Discovery Sport Towing Capacity

    The 2020 Land Rover Discovery Sport upholds the Land Rover reputation of luxury paired with extreme capability, but how much can a Land Rover Discovery Sport tow? The new Land Rover Discovery Sport can tow up to 4,409 pounds, courtesy of muscular engine options and plenty of performance features to ease your mind when you…

  • Land Rover Apple CarPlay® & Android Auto™: Setup, Features

    Apple and Android users are in for a treat! Since 2019 when Jaguar Land Rover announced the addition of Apple CarPlay® and Android Auto™ on select 2019 models as a part of the Smartphone Pack, there are now more Land Rover cars with Apple CarPlay® and Android Auto® than ever. Common apps include maps, music, phone,…

  • 2020 Land Rover Range Rover Configurations & Price

    A new 2020 Range Rover is the ultimate luxury for any driver, so if you want to stand out against competition like the Porsche Cayenne on the roads of Delray Beach, you might want to take a look at the Range Rover configurations for 2020. From the stunning Range Rover P400 HSE to the deluxe Range…

Saved
Saved Vehicles ×

SAVED VEHICLES

You don't have any saved vehicles!

Look for this link on your favorites:

Save

Once you've saved some vehicles, you can view them here at any time.

Contact
Contact Us ×

(561) 209-7000

Call Now

7550 Okeechobee Blvd • West Palm Beach, FL 33411

Get Directions

Today's Hours:

Open Today! Sales: 9am-5pm

Open Today! Service: 9am-5pm

Land Rover Palm Beach

7550 Okeechobee Blvd West Palm Beach, FL

Phone: (561) 209-7000

http://maps.google.com/?q=7550%20Okeechobee%20Blvd%2C%2C%20West%20Palm%20Beach%2C%20FL%2033411

Sales

Phone: (561) 209-7000

7550 Okeechobee Blvd West Palm Beach, FL

Service

Phone: (561) 209-7000

7550 Okeechobee Blvd West Palm Beach, FL
26.7073027 -80.1609604
[schema type="organization" orgtype="LocalBusiness" url="www.landroverpalmbeach.com" name="Land Rover Palm Beach" description="" street="7550 Okeechobee Blvd" city="West Palm Beach" state="FL" postalcode="33411" country="United States" email="landroverpalmbeach@crm.dealerinspire.com" phone="(561) 209-7000" logo="https://www.landroverpalmbeach.com/wp-content/themes/DealerInspireDealerTheme/images/logo.png"]
Land Rover Palm Beach
Land Rover Palm Beach
7550 Okeechobee Blvd
West Palm Beach, FL, 33411 United States
(561) 209-7000
https://www.landroverpalmbeach.com/wp-content/themes/DealerInspireDealerTheme/images/logo.png
Land Rover Palm Beach 26.7073027, -80.1609604.