IMPROVE YOUR FINANCES
 
You are here: Financial Calculators > Car Lease & Loan > When is it Profitable to End a Car Lease or Loan Contract Agreement?

When is it Profitable to End a Car Lease or Loan Contract Agreement?

A vehicle depreciates in a non linear trend during its term, unlike the outstanding balance, and there is always a risk when leasing or financing that the vehicle value will be lower than its book value, i.e. the market value of the automobile or the truck would be less than the balance left to be paid on the contract, a situation also known as negative equity.

< Read the rest of the introduction to this calculator

Please change the suggested values with your own in the blue text boxes.

Help with our calculators Help

 

Car Devaluation & Annual Depreciation Rates

 Help
%
 Help
%

Vehicle Contract Agreement

Leasing Financing
$
 Help
$
Vehicle minus exchange Help
$ $
 Help
% N/A $
 Help
 Help
% % $
Taxes on the down payment Help
$ N/A
Leasing Financing
Net amount to finance Help
$ $
 Help
months months
% %
 Help
% % $
Monthly payments Help
$ $

Early Buyout: The Important Months

Early Lease Buyout (sale taxes applicable)

  Point of profitability Highest Profit Lowest Profit
Month
Outstanding Balance $ $ $
Vehicle Value $ $ $
Profit $ $ $
 

Vehicle's Market Value vs Outstanding Balance (months)

 

Equity Position on the Vehicle

 

Evaluate the Equity on Your Vehicle in x Month

  Lease Early Lease Buyout Financing
Outstanding Balance $ $ $
Vehicle Value $ $ $
Equity $ $ $

Complete Analysis

For a complete view, here are all the numbers for every months:

Month Vehicle's
Market
Value
Lease
Payment
without
taxes
Lease
Capital
Lease
Interest
Lease
Outstanding
Balance
Lease
Early
Buyout
Lease
Equity
on Vehicle
Profit
on Early
Lease
Buyout
Loan
Outstanding
Balance
Financing
Profit on
Re-sell
 
 
 
Numbers in our calculators are rounded to two decimals.
The same calculations made in an Excel spreadsheet may differ slightly.

Link to Our Site | Links | Privacy Statement | Disclaimer | Acknowledgements | Youtube | RSS
Visit Credit Finance + to learn online how to improve your personal finances! Welcome to visitors from Canada.
Copyright 2008-2017 creditfinanceplus.com. No reproduction of any part without permission.