How to Calculate the Early Buyout of a Leased Vehicle

Most of the numbers you need to calculate an early lease purchase are stated in your lease contract. Your monthly lease payment includes an interest rate and tax charges, which you'll need to deduct from your figures when determining your cost. Expect to pay taxes on the car's purchase price, as long as you didn't pay taxes on the car's entire price at the beginning of your lease. You'll have to ask your leasing bank, your state motor vehicle office or a dealer if a portion of your payment goes toward taxes.

Instructions

1

Locate your lease contract. Find the following information: the residual value, your monthly payment amount and money factor, which is the interest rate charged to your monthly payment. The money factor is often expressed in decimal form, such as 0.00150.

2

Add the amount of lease payments you have left on the term of your loan. For example, if you have a 36-month loan with a $250 monthly payment and have paid for 12 months, multiply $250 by 24.

3

Multiply the result by the money factor. Using the same example with a money factor of 0.00150, multiply $3,000 (24 multiplied by the monthly payment of $250) by 0.00150. The result is the amount of interest payments you'll avoid paying when purchasing the lease.

4

Add the remainder of monthly payments to your residual value. Subtract the interest charges from the total cost. The result is your purchase price without taxes or fees.