How this calculator works
Buying keeps the car's equity (market value minus what it costs you to buy it) but gives up nothing else. Returning avoids the buyout entirely but comes with its own costs: disposition fee, any mileage overage, and any excess-wear charges. This tool totals both sides and reports which comes out ahead in dollars — the arithmetic only, no recommendation.
Frequently asked questions
Where do I find my buyout price?
It's in your original lease contract, usually called the "residual value" or "purchase option price." Your leasing company can also quote a current payoff figure if you call and ask.
Do I pay sales tax on a lease buyout?
In most states, yes — buying out your lease is treated as a purchase and taxed on the buyout price. Tax on buyouts varies by state, and some states tax fees differently than the buyout price itself, so confirm the rate with your state's DMV or your leasing company.
Can I sell my leased car to a third party instead of buying it myself?
Sometimes. Some captive lessors restrict third-party or dealer buyouts, so check your contract or ask your leasing company before assuming a third-party sale (sometimes called a lease-buyout sale) is available to you.
What is a disposition fee?
A charge in your lease contract for returning the car instead of buying it, meant to cover the leasing company's cost of preparing and reselling the vehicle. It's set in your contract and typically runs a few hundred dollars.