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Lease value = Current Kelley Blue Book price Lease buyout price = Residual value + any excess mileage and wear fees We’re not going to take taxes into consideration yet. If the car is worth more, then your residual value is effectively a discounted price! To know whether you’re getting a good deal, compare what you’d pay to buy the lease versus what the car’s worth. The car’s actual value may be more or less. The residual value is an estimate of what the car will be worth at the end of the lease. If the vehicle is still worth a lot, the buyout loan payments could be more than you expect. One of leasing’s biggest appeals is a low monthly payment. AffordabilityĬheck whether buying your leased car is affordable by using an auto loan calculator. You’ll have to take those into account on your own, but we can help with the money math. There are some emotional components to buying a car –– feelings of attachment to your leased vehicle versus the desire to purchase a shiny, new one, for example. What to consider before buying out a lease Not every auto lender offers a lease buyout loan, which is considered different from a new, used or refinance car loan. Once you know its price, you could simply pay the amount in cash to the leasing company and have its ownership officially transferred to you or line up an auto loan. You could also find the buyout price by calling your leasing company or looking at your online lease account. The car’s residual value, listed in the original lease contract, is its buyout price. Purchasing a lease is called a buyout whether you pay in cash or get a lease buyout loan. What to consider before buying out a lease.We’ll break down how a lease buyout works, when it is - and isn’t - to your advantage and whether a lease buyout is worth it. But is that to your best advantage? Some easy math could point the way. If you’re nearing the end of your lease, you’re probably considering a lease buyout.