Lease Ending: Buy Out or Return?
When a car lease is winding down, the biggest question is whether to buy out the vehicle at its residual value or simply return it. The residual value written into your contract was estimated ahead of time, back when you signed, so it often differs from the actual used-car market price by the time the lease ends. If the market price is higher than the residual value, buying out favors you; if it's lower, returning the car may be the better move.
This calculator takes your contracted residual value, the current market price, and the buyout costs — sales tax, registration, and similar fees — to compute your actual gain or loss from buying out. A positive result means you'd be buying below market price; a negative result means you'd be paying more than the car is currently worth.
That said, don't decide on the numbers alone. Mileage, maintenance history, and future upkeep costs all matter too. Even a calculated loss might be worth accepting if the car is in great shape and you'd rather keep it — use this calculator as one input among several.
Frequently Asked Questions
It's the amount set in the lease contract as the vehicle's expected value at the end of the lease term. Paying this amount at the end lets you buy out and keep the car.
Typically sales tax, registration fees, and title transfer fees. These vary by vehicle price and location, so it's worth getting a quote in advance.
Purely on price it's a loss, but it's worth weighing the car's condition, mileage, and the cost of alternatives before deciding.