What Is Lease Equity?
Lease equity is the difference between your car’s current market value and the amount you owe to buy it — typically called the lease buyout or payoff amount.
If your car is worth more than the payoff, you have positive equity. If it’s worth less, you’re “upside down” and have negative equity.
How to Find Your Lease Equity
Here’s a simple way to estimate your equity:
- Find your lease payoff amount. This comes from your leasing company or your online account. It’s usually the residual value plus any remaining payments, fees, or taxes.
- Determine your car’s current value. Use trusted tools like:
- Kelley Blue Book (kbb.com)
- Edmunds
- Carvana, Vroom, or CarMax offers
- Facebook Marketplace or local listings for real-world comps
- Subtract the payoff from the market value. That’s your equity!
Example: If your car is worth $24,000 and your lease payoff is $20,000, you have $4,000 in positive equity.
Why Equity Matters
Most people think their only options at lease end are to return the car or buy it — but positive equity opens a third option: selling or trading it in and pocketing the difference.
If you’re not buying the car for yourself, you can sell it to a third party (if your lease allows) or trade it in and use the equity toward your next vehicle.
Can You Access Equity with a Lease Buyout?
Yes — if you buy your leased car and its value is higher than the payoff, you retain the equity. You can refinance it, sell it, or keep driving it knowing you got a great deal.
This is a popular route for drivers whose cars have held value well or those who put fewer miles on the car than expected.
What If You Have Negative Equity?
If your car is worth less than the payoff amount, you have negative equity. In that case, it might make more sense to return the vehicle at the end of the lease and walk away — unless you absolutely want to keep the car.
Tips for Maximizing Equity
- Keep mileage low and the condition excellent
- Check values a few months before your lease ends
- Watch for spikes in used car values — they can swing in your favor
- Don’t rely solely on dealership trade-in offers — get multiple quotes
Final Thoughts
Understanding your lease equity gives you more control — and more options — at lease end. Whether you sell, trade in, or buy your leased car, knowing what it’s worth helps you make the most of your investment.
Need help calculating your lease equity or securing a buyout loan? The Lease Solutions team can guide you through every step.
