What is Lease Equity?

Woman Working on Laptop

Leasing is touted as an affordable alternative to financing a vehicle, but common wisdom suggest that the sacrifice you make when you lease is the ability to build equity. Believe it or not, Manhasset drivers can build equity in a leased car. To find out how to build equity in a leased vehicle, read our comprehensive overview of lease equity. We’ll start by thoroughly defining what leasing is, and then, we’ll explain what lease equity is in detail. Once you’re done reading, contact Rallye Acura to discuss your options in Roslyn! 

What is Leasing?

Before we dive into what lease equity is and how to build equity in a leased vehicle, let’s take a moment to define what leasing is in detail. When Garden City drivers lease a car, they only get access to the vehicle for a few years. The advantage of leasing is that you only have to pay for the value of the vehicle that depreciates over the course of your lease term, as opposed to financing where you take a out a loan on the full value of the vehicle. This means that when you lease, you’ll make a smaller down payment and monthly payments. 

But what’s the trade-off? When you finance, you can sell your car at any time, and you’ll see some of the money you’ve put towards the principal of your loan (equity) returned to your bank account. This isn’t the case when you lease, but there’s a lesser known type of lease equity. Let’s take a look at what lease equity is and how you can build lease equity in a leased vehicle. 

How Do I Build Equity in a Leased Car?

The amount of your lease loan is determined by an estimated amount of depreciation that is likely to occur over the length of your lease term. The amount of depreciation largely hinges on an estimate of how many miles you’re likely to drive over that time span. If you drive far few miles than the estimated mileage stipulated in your lease terms, then you’ve paid more for your lease that than the value that you used. 

At the end of your lease term, you’ll be presented with an opportunity to buy the car. A fair and honest dealership like Rallye Acura will take the difference between the value of the mileage you’ve actually driven and the original loan value of your lease that was based upon an estimate of how much you’ve drive, and factor that value into the price to buy your lease vehicle.

Learn More About Building Equity in a Leased Vehicle

Now that you know what lease equity is, if you’d like to further discuss the strategy of building equity in a leased car, or you have a lease and you’re considering buying it out, call Rallye Acura at 516-508-9147. We’ll make sure our Glen Cove neighbors make full use of any lease equity they’ve built. Have other automotive finance or insurance quetstions. We’re happy to answer them. You can also explore our other finance and insurance tips for more helpful reads about car lease takeovers and lease return procedures


More from Rallye Acura

  • 2024 Acura ZDX Features Google Connectivity

      The upcoming 2024 Acura ZDX will be a trailblazing new achievement for Acura in many ways. First, this is the first-ever electric vehicle (EV) in the brand’s lineup. The model originally debuted in early 2009 and was released in the market as a 2010 model. Unfortunately, the model was discontinued in 2013, but it’s…

  • 2023 Consumer Guide® Best Buys: Acura MDX, RDX, TLX Return as Winners

      When you’re shopping around for a new vehicle in the Manhasset area, it’s important to look at factors like fuel efficiency, affordability, and resale value. Consumer Guide® Automotive is a leading source of this information, providing shoppers with unbiased reviews that touch on all aspects of the car buying decision process. Each year, a…

  • 2023 Acura TLX TYPE S PMC Edition

    Limited to 50 units, the 2023 Gotham Gray TLX TYPE S PMC Edition has just been released. This special edition TLX features a Gotham Gray matte pain that has only ever been offered on the NSX TYPE S race car. Built specifically for the U.S. market at the Performance Manufacturing Center in Ohio, this highly…

Contact Us

Sales: 516-508-9147

Call Now

Service: 516-368-8839

Call Now

Parts: 516-368-8821

Call Now


Call Now

1750 Northern Blvd • Roslyn, NY 11576

Get Directions

Today's Hours:

Open Today! Sales: 9am-6pm

Open Today! Service: 7am-3pm

Open Today! Parts: 7am-3pm

Rallye Acura 40.8030784, -73.6464701.