Not everyone can own a car. But in our ever-developing world, the mere fact that you do not own a car does not stop you from driving one; you could lease a car. As leasing is not free, it is of course understandable that you would want to know how much you would need to expend to acquire a car on lease. But doing your own Auto Lease payment calculation can be challenging for quite a number of reasons. It may be that you are baffled by all the legalese in the leasing agreement or, that the different figures on it have your head spinning. This article on How to do your own auto lease payment calculation should help alleviate any apprehension you may have. If you’re looking to finance your next car, you can also visit our Auto Finance Calculator.
What you need to do your own Auto Lease payment Calculation
To get you started on your way to calculating your own auto lease payment calculation, there is certain information you will require and we have taken the liberty to enumerate them below.
This represents the car’s retail price
This represents the price for which the car is being sold after subtracting all rebates and incentives. It can be lower than the MSRP if you negotiate well with the dealer.
These are fees that you can apply against the cost of the car, ensuring that you pay less
It is usually calculated in percentage and it represents the dealer or manufacturer’s estimation of the value of the car after some time, usually a couple of months.
This refers to the period that the lease covers. Even though a term of 36 months is usual, the lease term is subject to agreement.
This represents the amount to be paid as interest on the car that is subject to the lease.
How to do your own auto lease payment calculation
Calculating the monthly Depreciation is the first step that you take in calculating your own auto lease payment calculation. As with every other thing, the law of diminishing returns applies to cars and that is the reason that dealers and manufacturers calculate the depreciation to enable them to recoup some money for the diminishing value of the car that is the subject of a auto lease. To calculate the Depreciation, you have to subtract the Capitalized Cost of the car from its Capitalized Cost and then divide the result by the term of the lease. The Capitalized cost can be assessed by subtracting all rebates, down payments, and incentives from the selling price.
The Monthly Finance charge is can be assessed by adding the Capitalized cost to the Residual Value and multiply the result you get with the Money Factor.
The amount that you get when you make an addition of the Depreciation and the Finance Charge represents your lease payment.
Things to remember about calculating your own Car Lease Payments
Like you feared earlier, there is a lot of legalese that can make calculating your own auto lease payment strenuous. This segment explains them.
This represents a charge that some states require that you pay on the leased parts of the car.
This represents the administrative or processing fee that is charged by the manufacturer. It is also known as the acquisition fee.
This represents fees charged by the Government for things like the registration of the car.
Now that you know how to do your own auto lease payment calculation, you should know that the result you get from your calculations may vary from the quotations you receive. This advice is based on helping you calculate a relative auto lease payment.
At The Vantage Auto Group, we save you time, money and peace of mind when it come to Buying your New Car!
No need to deal with the headaches of sitting in a dealership for hours on end and haggling with pushy sales reps. With our robust dealer network, we’re able to get wholesale pricing and guarantee the most competitive lease or purchase price on any new vehicle. We handle all makes and models, so you can be confident that we’ll find the perfect vehicle that fits your needs.
There are many places to lease or purchase your next vehicle. The products are the same regardless of the source. So it’s the people who make the difference. Our staff is passionate about what we do. We are all car enthusiasts and understand your excitement about finding the right vehicle at the best possible terms. Along with our enthusiasm is our commitment to be transparent about your lease / purchase and our pledge that all dealings with us be fair, and yes, even fun!
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Good credit, Bad Credit, or looking to get an approval, CONTACT US Today! We work directly with multiple lenders to find the lowest possible lease rate on a new car lease. Come banks will even help us offer short term lease as short as 12 months if not ready to commit to a 2 or 3 year lease. We can even help you get out of your current car with our swapalease lease transfer program. when using our swapalease program, you will no longer be responsible for your current car.
Price Reflects TIER 1 Credit Approval. Prices are for new lease vehicles only. Images are for Display purposes only. Price Excludes local taxes, acquisition fee & DMV/title. Pricing, lease term, and miles per year may vary. All Incentives are Applied For Qualified Customers including Loyalty Rebate, Conquest Rebate, VPP Rebates, College Graduation Rebates, and Regional Rebates.
No need to deal with the headaches of sitting in a dealership for hours on end and haggling with pushy sales reps. With our robust dealer network, we’re able to get wholesale pricing and guarantee the most competitive lease or purchase price on any new vehicle. We handle all makes and models, so you can be confident that we’ll find the perfect vehicle that fits your needs.
There are many places to lease or purchase your next vehicle. The products are the same regardless of the source. So it’s the people who make the difference. Our staff is passionate about what we do. We are all car enthusiasts and understand your excitement about finding the right vehicle at the best possible terms. Along with our enthusiasm is our commitment to be transparent about your lease / purchase and our pledge that all dealings with us be fair, and yes, even fun!
