Car Lease Takeover Calculator
Calculate the effective monthly cost of assuming an existing vehicle lease.
How to Calculate the True Cost of a Lease Takeover
A car lease takeover (or lease assumption) can be a fantastic way to get into a late-model vehicle with a shorter commitment than a standard 36-month lease. However, the sticker price—the monthly payment—rarely tells the whole story. To find the "effective" monthly cost, you must account for transfer fees, incentives, and end-of-lease disposition fees.
The Lease Takeover Formula
Our calculator uses the following formula to determine your actual financial obligation:
Total Cost = [(Monthly Payment × Remaining Months) + Transfer Fee + Disposition Fee – Cash Incentive] + Total Sales Tax
Effective Monthly Cost = Total Cost / Remaining Months
Key Factors to Consider
- Cash Incentives: Often, sellers are desperate to get out of a lease and will offer you a "down payment" to take over their contract. This significantly lowers your effective monthly cost.
- Transfer Fees: Companies like BMW Financial, Mercedes-Benz Financial, or Ford Credit charge fees ranging from $100 to $600 to process the paperwork.
- Disposition Fee: This is a fee charged by the leasing company when you return the car at the end of the term. It is often waived if you buy the car or lease another vehicle from the same brand.
- Mileage Allowance: Always check how many miles are left on the contract. If the previous owner used more than their fair share, you could be hit with heavy "excess mileage" fees at the end.
Real-World Example
Imagine you want to take over a lease with 12 months remaining at $400/month. The seller offers a $1,200 cash incentive to entice you. However, there is a $500 transfer fee and a $350 disposition fee.
- Remaining Payments: $4,800 ($400 x 12)
- Fees: +$850 ($500 + $350)
- Incentive: -$1,200
- Total Real Cost: $4,450
- Effective Monthly Payment: $370.83
In this scenario, the cash incentive makes the car $29.17 cheaper per month than the advertised lease payment.
Is a Lease Takeover Right for You?
Takeovers are ideal for individuals who need a car for a short period (12–24 months) or those looking for a specific luxury model that may have had a large down payment already paid by the original lessee. Use our calculator to ensure the deal makes sense before signing the transfer documents.