If you have a Mercedes-Benz lease in Covina or La Puenta, and you’ve decided that you want to purchase your vehicle, Mercedes-Benz of West Covina is here to guide you through the steps. Find out how much you’ll have to pay by reading our overview on how to calculate a car lease buyout. If you have any confusion, contact us so we can clear up your questions.
Is Buying Out Your Lease Worthwhile?
It’s possible that Glendora and Baldwin drivers have seen a “buyout amount” listed on their monthly leasing bills. This figure includes the remaining value of your vehicle since you began leasing it. This is the amount you would have to pay off (via monthly payments) were you to sign a finance contract to own your vehicle. Granted, some leasing companies would require you to pay an additional purchase fee as well, although this wouldn’t dramatically affect your vehicle’s residual value. If you can’t find a “payoff amount” on your statement, follow these steps in order to figure out how to calculate a car lease buyout.
- Determine residual value: Consult your lease contract. It will have a buyout value that was calculated at the beginning of your lease. This value was a speculation on the future, so if there’s any damage to the vehicle or parts replacement, that could affect things.
- Determine the actual value of the vehicle. For a more accurate estimate, use the Kelley Blue Book Value Your Trade tool to determine what the current going rate for your specific model is this year. If you’ve driven your vehicle less than 12,000 miles each year, chances are it’s depreciated less than you might think. The KBB tool will allow you to quantify and factor in the wear and tear on your vehicle, so there may be a difference between actual value and your residual value estimate.
- Compare the residual value and the actual value.
If the actual value ends up being higher than the speculation on your lease contract, then purchasing your leased vehicle is a good investment.
- Account for license and registration fees.
You may find this is a good investment, however, you’ll want to factor in additional costs, like the title transfer and the licensing and registration fees. You can get specifics on these by checking out your state DMV site. Also, be sure to ask your leasing company about any unique fees they might have.
- Account for sales tax.
Finally, when figuring out how to calculate a lease buyout, Whittier drivers will want to check their local DMV site to see what the local sales tax for a vehicle purchase is.
Have Questions About How to Calculate a Lease Buyout?
Now that you have a better idea of how to calculate a car lease buyout, it’s time to find out if buying your leased vehicle is a good investment. If you run into trouble along the way or need a helping hand, don’t hesitate to reach out to the financiers at Mercedes-Benz of West Covina. We’re happy to help!