What the buyout calculation tells you
The core comparison is the vehicle’s estimated market value minus the current buyout. Adding confirmed taxes and transaction fees gives a more realistic acquisition total and can turn apparent equity into a negative net position.
The remaining-payment comparison is useful context, but it is not a complete ownership comparison. Buying creates an owned asset while returning a lease does not.
Figures to confirm first
Ask your leasing company for a current buyout or payout quote and its expiry date. Use a realistic purchase offer or market estimate for the vehicle. Enter taxes and fees only when you have a defensible amount for your province and transaction.
- Whether the quote includes outstanding payments or fees.
- Who is eligible to buy the vehicle.
- How provincial tax applies to the particular transaction.
- Whether inspection, registration, safety, or dealer charges apply.
Worked example
Market value above the residual
A vehicle has a $27,000 buyout and an estimated $28,200 market value. Before tax and fees, the apparent equity is $1,200. If the driver enters $3,510 of confirmed tax and fees, the total buyout becomes $30,510.
After those entered costs, the market position is −$2,310. That does not automatically make returning the lease better, but it prevents the $1,200 headline equity from being mistaken for the full transaction result.Frequently asked questions
Is the residual value always my current buyout?
No. A lease-end residual and a current mid-lease buyout can differ. Use a current quote from the leasing company.
Does the calculator add GST, HST, PST, or QST?
No. Enter a confirmed tax amount yourself because the applicable treatment depends on province and transaction.
Does positive equity guarantee a profit?
No. Market value can change, offers vary, and taxes, fees, repairs, or sale restrictions can reduce or eliminate apparent equity.