According to my Honda lease agreement, executed in Ohio, if I exercise my option to purchase prior to the end of the lease term, the purchase price will be…
The adjusted lease balance plus
(a) any payments and other charges due and unpaid except excess mileage and excess wear and;
(b) any taxes or fees required by law in connection with the purchase.
The adjusted lease balance is the unamortized portion of the adjusted capitalized cost determined on an actuarial basis where earnings are accrued on the first day of every period.
In other words, my purchase price is the sum of…
(1) the present value of your remaining payments plus the present value of the residual using the actuarial rate (i.e., interest rate) implicit in the lease.
(2) any other payments and charges in connection with the lease
(2) all taxes and fees required in connection with the purchase.
Your question illustrates the need for lessees to create a lease amortization schedule such as the one found
here
Under no circumstances should one be charged a disposition fee when exercising the purchase option. Some lease agreements require the payment of a purchase option fee which is usually the same amount as the disposition fee. There is no purchase option fee specified in my Honda Lease Agreement. There is, however, a turn-in fee (i.e., disposition fee) of $350 IF I don’t purchase the vehicle.