Hi All There has been lots of discussion on this topic so figured i would provide the details based on the actual lease contract. Section 23B "Purchase Option Before Maturity" states that you have the option of purchase anytime before scheduled maturity, so long as you are not in Default of the Agreement, and under the terms of Section 9 and at an Adjusted Lease Balance as calculated in Section 22D. Section 9 covers the Purchase Option Fee, if any. Mine was $0 but have heard values of up to $300 in other threads. Section 22D explains how the Purchase Price is equal to the Adjusted Lease Balance and also how to calculate the same. In simple terms it states this: Adjusted Lease Balance is the Adjusted Cap Cost disclosed in Section 7 minus all depreciation and amortization accrued (paid) up to the termination date calculated using the "Constant Yield Method." This method is used to determine the portion of the Rent Charge in Sec 7 that you owe for the buy off. If further defines the balance subject to rent charge as Adjusted Cap Cost minus the sum of; 1. all depreciation and amortized amounts accrued and 2. the first base monthly payment. Essentially this states that you can, at any time, buy out the lease prior to maturity. Rent Charges are "earned" and paid one month in advance on leases. That said, if you began the buyout process as soon as the info was available from KMF, you would be paying a portion of the rent charge for the time the vehicle was under lease. Rent charge is usually based on Adj Cap Cost + Residual Value...for the buyout, you only pay the portion of rent based on the adjusted cap cost. Having only paid the first month payment (depreciation/amortization + rent + tax if applicable), you would take the adjusted cap cost and reduce it by this amount minus the rent and tax. This is your Adjusted Lease Balance. Because only one payment has been made, this number is also the "balance subject to rent charge" which would be multiplied by the Money Factor to get the portion of Rent owed. This means you pay a rent charge on the Adjusted Cap Cost minus the depreciation and amortization from the first payment only and NOT also on the Residual Value as it is normally calculated. This value becomes your buyout number and you would owe any applicable taxes on this amount. Hope this helps. Cheers!