1099 Contractor Tax Rate Calculator 2019

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Car Lease Buyout Calculator

The buyout price stated in your original lease contract.
What the car is worth today (check KBB or Edmunds).

Financing the Buyout (Optional)

36 Months 48 Months 60 Months 72 Months

Buyout Analysis Results

Current Equity Position:
Residual Value: $0.00
Estimated Sales Tax: $0.00
DMV/Fees: $0.00
Total Cost to Buyout: $0.00
Estimated New Monthly Payment: $0.00
Based on financing the total buyout cost over the selected term.
function calculateLeaseBuyout() { var residualValue = parseFloat(document.getElementById('residualValue').value); var marketValue = parseFloat(document.getElementById('marketValue').value); var salesTaxRate = parseFloat(document.getElementById('salesTaxRate').value); var dmvFees = parseFloat(document.getElementById('dmvFees').value); var loanRate = parseFloat(document.getElementById('loanRate').value); var loanTerm = parseInt(document.getElementById('loanTerm').value); var resultDiv = document.getElementById('buyoutResult'); var financeSection = document.getElementById('financeResultsSection'); // Basic Validation if (isNaN(residualValue) || residualValue < 0) { alert("Please enter a valid Residual Value."); return; } if (isNaN(marketValue) || marketValue < 0) { marketValue = 0; // Allow empty, assume zero equity analysis } if (isNaN(salesTaxRate) || salesTaxRate < 0) { salesTaxRate = 0; } if (isNaN(dmvFees) || dmvFees = 0 && loanTerm > 0; if (showFinancing) { var principal = totalBuyoutCost; var monthlyInterest = (loanRate / 100) / 12; if (monthlyInterest === 0) { monthlyPayment = principal / loanTerm; } else { monthlyPayment = (principal * monthlyInterest) / (1 – Math.pow(1 + monthlyInterest, -loanTerm)); } financeSection.style.display = 'block'; document.getElementById('monthlyPaymentCalc').innerText = "$" + monthlyPayment.toFixed(2); } else { financeSection.style.display = 'none'; } // Update UI var equitySpan = document.getElementById('equityResult'); if (equity > 0) { equitySpan.innerText = "+$" + equity.toFixed(2) + " (Positive Equity)"; equitySpan.style.color = "green"; } else if (equity < 0) { equitySpan.innerText = "-$" + Math.abs(equity).toFixed(2) + " (Negative Equity)"; equitySpan.style.color = "red"; } else { equitySpan.innerText = "$0.00 (Break Even)"; equitySpan.style.color = "#333"; } document.getElementById('resValCalc').innerText = "$" + residualValue.toFixed(2); document.getElementById('taxCalc').innerText = "$" + taxAmount.toFixed(2); document.getElementById('feesCalc').innerText = "$" + dmvFees.toFixed(2); document.getElementById('totalCostCalc').innerText = "$" + totalBuyoutCost.toFixed(2); resultDiv.style.display = 'block'; }

Should You Buy Your Leased Car? Understanding the Buyout Process

As your car lease approaches its maturity date, you are faced with a significant financial decision: should you return the vehicle to the dealership, or should you exercise your option to purchase it? This decision often hinges on the relationship between the car's pre-determined "residual value" and its actual current market value.

Our Car Lease Buyout Calculator is designed to help you crunch the numbers and determine if purchasing your leased vehicle is a smart financial move. By inputting a few key figures from your lease agreement and current market data, you can assess your equity position and estimate the total cost of ownership.

Key Terms Explained

  • Residual Value: This is the most critical number. It is the estimated value of the car at the end of the lease term, which was agreed upon when you first signed your lease. This is effectively your purchase price.
  • Current Market Value: This is what the car is actually worth in the real world today. You can find this figure using third-party appraisal tools like Kelley Blue Book (KBB), Edmunds, or by getting a quote from a dealership like CarMax.
  • Equity Position: This is the difference between the market value and the residual value. If the market value is higher than the residual value, you have positive equity—meaning you can buy the car for less than it's worth. If the market value is lower, you have negative equity.

When Does a Lease Buyout Make Sense?

Generally, purchasing your leased vehicle is a good idea when you have significant positive equity. For example, if your lease contract states a residual value of $20,000, but due to market shortages the car is currently worth $25,000, buying out the lease allows you to capture that $5,000 in equity instantly.

Furthermore, you know the vehicle's history. Unlike buying a used car from a stranger, you know exactly how the leased car was maintained and driven during the past few years.

Calculating the Total Cost

Remember that the residual value is not the final price. Just like buying any other car, a lease buyout involves additional costs:

  • Sales Tax: In most states, you must pay sales tax on the residual value amount when you purchase the vehicle.
  • DMV and Title Fees: You will need to pay state fees to transfer the title from the leasing company to your name and renew the registration.
  • Dealer Lease Buyout Fees: Some contracts include specific administrative fees for processing a buyout, sometimes ranging from $300 to $500. Check your contract fine print.

Use the calculator above to estimate the total out-of-pocket cost to own your leased vehicle and see what your new monthly payments might look like if you choose to finance the purchase with a used car loan.

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