Buyout vs return
At maturity, should you buy the car, return it, or replace it? Compare equity against disposition cost.
Educational estimate only. Real quotes depend on taxes, fees, acquisition/disposition charges, rebates, and how your state treats leases. Use your contract and broker numbers as the source of truth. Reading lease payments and the lease glossary explain the fields behind these calculators.
Consider buying
- Equity (market − buyout)
- $2,500.00
- Cost to return (disposition)
- $395.00
- Cost to buy out
- $18,500.00
Market value exceeds your buyout by more than the disposition fee—buying may preserve equity.
Worked example
End-of-lease decision: buy or return?
- Residual buyout price
- $24,000
- Purchase-option fee
- $595
- Tax on buyout
- +$1,800 (7.5%)
- Total buyout cost
- $26,395
- Current market value (KBB)
- $28,500
- Equity if you buy
- +$2,105
Always check current market value vs buyout price. Used-car shortages can flip this calculation hard.
Buyout vs return FAQ
Common questions about this calculator. For broader leasing topics, see the full FAQ.
When the buyout price (residual + purchase-option fee + tax) is below current market value, or when you're well over mileage and would owe substantial overage. The breakeven tool compares both paths.
Captive-lender buyouts are typically fixed at the contract residual. Third-party buyouts are sometimes negotiable. Manufacturers occasionally bar third-party buyouts entirely — check before lining up financing.
Lease-buyout rates are usually slightly higher than new-car rates and may have shorter maximum terms. Credit unions often have the best lease-buyout programs.
Other lease calculators & tools
Money factor benchmarks
Educational credit-tier ranges and MF-to-APR examples—confirm tier with your lessor.
Deal readiness checklist
Eight yes/no checks before you sign—term alignment, disclosures, total cost, and availability.
Effective monthly cost
Spread drive-off over the term to compare low payment + high DAS vs higher payment + low DAS.