What “Lease equity” means
If used-car prices rise or your car’s residual was set low, the car can be worth more than the buyout. That difference is equity, and it belongs to you, not the dealer, if you act on it.
Ways to capture it: buy the car and keep it, buy it and resell it, or trade it to a dealer who pays off the lease and credits you the difference. Some leasing companies restrict buyouts by third-party dealers or buying services, so check your lessor’s current rules first.
How it shows up at the dealership
If you return the car, the dealer or leasing company keeps the equity. Some dealers will tell you you have “no equity” while planning to buy the car themselves. Get your own numbers.
Worked example · illustrative numbers, not a quote
Finding your lease equity
| Buyout from leasing company (residual + fee) | $24,350 |
| Best instant offer (CarMax, Carvana, brand dealer) | $27,500 |
| Lease equity | about $3,150 |
Taxes and lessor rules can change the net. Equity on a trade can also be used as a cap cost reduction on your next car.
What to do
- Get a payoff quote from the leasing company.
- Collect two or three instant offers, and ask each whether they can buy from your lessor.
- If they can’t, compare buying it out yourself and reselling.
What to say
“My buyout is $24,350 and I have a $27,500 offer elsewhere. If you want the car, credit me the $3,150 equity on my next deal.”
Also called: positive lease equity.