How to Calculate a Honda Lease Buyout

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If you have a car lease in Dover and you’ve decided you want to buy your leased car, Parkway Honda can help. Find out how much you’d be paying by checking out our guide on how to calculate car lease buyouts on leased vehicles, and be sure to contact us if you have any questions!

Buying Out Your Lease: Is it Worth It?

You may see a Buyout Amount or Payoff Amount listed in your monthly leasing statement. This buyout amount includes the residual value of your vehicle at the start of the lease, the total remaining payments, and possibly a car purchase fee (depending on the leasing company). If you don’t have this value listed anywhere, or you prefer to do your research on your own, follow the steps below:

1. Determine the residual value of the vehicle.
   This information will be found in your lease contract, as it was calculated at the beginning of the lease. This value is the estimated future value of the vehicle by the time the lease contract ends.
2. Determine the actual value of the vehicle.
   Your car may have decreased in value from when the lease began, due to unavoidable depreciation, or any wear and tear from driving. Or, if you’ve driven your vehicle less than the average 12,000 miles per year, it may not have decreased in value as much as you’d think. Use a service like the Kelley Blue Book Value Your Trade tool to assess the current market value of your car.
3. Compare the residual value and the actual value.
   If the actual value ends up being higher than the residual value from your lease contract, then purchasing your vehicle might be a good deal. If not, you may be able to negotiate with the dealer on the purchase price.
4. Account for license and registration fees.
   If you buy the car that you’ve been leasing, that means that certain costs of ownership are transferred from the leasing company to you. This includes title transfer costs, licensing, and registration fees. You can learn more about the fees on your DMV site, and check with your leasing company for any of their fees.
5. Account for sales tax.
   There is a local sales tax rate when you buy out your vehicle, which you may also find on your DMV site or your state’s government website.

Lease-End Buyouts vs. Early Lease Buyouts

Lease-End Buyouts: If you are at or near the end of your lease, you will probably be able to negotiate a better buyout. If the dealer thinks you are planning on selling it back to them, they may offer you a better deal to keep the vehicle.

Early Lease Buyout: You won’t have much wiggle room negotiating the purchase price if you are trying to end your lease agreement early. Whether due to too much vehicle wear and tear or the danger of exceeding the mileage limits, the dealer knows they have more leverage in the situation if you are trying to prematurely end your lease.

Rely on Parkway Honda for More Automotive Tips

If you have questions about lease buyout loans, auto loan interest rates, and more, contact your local authorized Honda finance center. We are just a short drive from Coshocton, so come see us in Dover!