How to Calculate Release Payments on a BMW
1. Read your lease agreement. Look for a buyout provision as well as early termination clause. Early termination clauses are generally reserved for people quitting a lease, but some may have a buyout stipulation.
2. Determine the capitalized cost. This is the difference between the total amount of paid lease installments and the purchase price of the car. For instance, if the purchase price is $40,000 and you have paid 50 installments of $667 on a five-year lease term, the balance or 'capitalized cost' would be $6,650.
3. Include applicable registration and licensing fees. Phone the nearest DMV office and get the costs of any title transfer fees and registration fees. Also calculate sales tax based on your state's sale tax rate.
4. Add the capitalized cost, registration and licensing fees with the sales tax. This will yield your lease release payment or buyout cost.