How to Determine Equity in a Leased Vehicle

If you can purchase your leased vehicle from your bank for less than its resale or trade-in value, the vehicle has equity. Depending on how far along you are in your lease contract, your vehicle might not have any equity at all. Leasing banks charge monthly payments based on expected depreciation, which often evens out at the end of the lease term. The residual value, or the cost of the car that stays out of your payments, is the expected value at the end of the term. The vehicle might have no equity in it until then.

Instructions

1

Call your leasing bank to obtain a buyout amount. The buyout amount is your cost to purchase the vehicle, whether you intend to purchase it yourself, sell it or trade it.

2

Research your car's value using Internet appraisal guides, such as Edmunds.com, the Kelley Blue Book website, NADA Guides website or the Galves book, which you can obtain at a local bookstore. Determine a median value from at least three sources, as all offer different values.

3

Subtract your vehicle's value from its buyout amount. The remaining amount is your current equity.