Do you have equity in your leased car?
Lease equity is one number: your car's current market value minus the amount it would cost to buy out your lease today. Most leases are set up so that number lands close to zero, but sometimes it is positive, and when it is, that is real money you can keep instead of quietly handing it to a dealer. Here is how to check it, in two steps, before anyone makes the decision for you.
What lease equity actually is
Every lease has a buyout, also called the payoff: the amount the leasing bank will let you, or a dealer, pay to own the car outright right now. It is the remaining payments plus the residual value the contract set at the start, sometimes with a small purchase fee. Equity is simply the car's real market value minus that buyout. If the car is worth more than the buyout, you have positive equity. If it is worth less, which is common, there is nothing to capture, and that is fine, because on a lease you can just hand the car back. Positive equity usually shows up when used-car prices ran hot or when the original residual was set low, so the car ended up worth more than the contract assumed.
How to check, in two numbers
First, get your exact buyout. Log in to the leasing bank's site or call them and ask for the payoff good through a specific date, since it changes as you make payments. Second, get the car's real market value: an instant cash-offer quote from a couple of online buyers, plus a quick look at a pricing guide for your exact trim, mileage, and condition. Subtract the buyout from the value. If the value is higher, that gap is your equity. Be honest about mileage and condition, since both pull the value down, and check whether a disposition fee or any remaining payments still apply, because those eat into the gap.
How to use it, and how not to lose it
If you have equity, there are two clean ways to keep it. You can trade the leased car toward your next car: the dealer pays the bank the buyout and credits the difference to your new deal, which lowers your payment. Or you can buy the car out yourself and sell it privately for its market value, pocketing the gap. The trap to avoid is simple: a dealer who knows the car has equity can buy your lease at the payoff and keep the difference if you never checked the two numbers. You cannot lose what you have already measured, so measure it first. Mileage overages, wear charges, and early-termination rules can change the math, so confirm them with the bank rather than the salesperson.
Common questions
No. Leases are designed so the buyout and the market value end up close, so most have little or no equity. It happens mainly when used prices are unusually high or the original residual was set low. When there is no equity, you simply return the car at lease end, which is the whole point of leasing.
Log in to your leasing bank's website or call them and ask for the payoff good through a specific date. It is the remaining payments plus the contract's residual, sometimes with a purchase fee, and it changes over time, so ask for a current quote with an expiration date.
Yes. A dealer can pay the bank your buyout and apply the difference between the car's value and that buyout to your next car, which lowers your payment. Know both numbers first so the equity goes to you and not quietly to the dealer.
No. Getting your payoff from the bank and a market-value estimate does not touch your credit and costs nothing. If you then move to a new lease with us, the first step is a free soft credit pull that does not affect your score, and an SSN is required to run the application.