Last post on Apr 11, 2013 at 2:36 PM
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What is this discussion about?
Dissecting the Deal - How To Spot a Good Lease
10 Steps to Leasing a New Car
The "Residual Value" of Leasing
Calculate Your Own Lease Payment
#1 of 173 How to Calculate Monthly Lease Payments
by Kirstie@Edmunds HOST
Jan 13, 2010 (6:41 am)
Calculating lease payments can be tricky, but we're here to help! You can try it yourself using the steps below, or provide info and we'll do it for you.
In this example, we use a vehicle with a cap cost of $24,000 leased for 36 months, with 72% residual value and a money factor of .0038.
Step 1: Capitalized Cost
The cap cost is the selling price you've negotiated for the vehicle, minus any downpayment. (example: price is 24,000 - 3,000 downpayment = 21,000 cap cost)
Step 2: Calculate Your Vehicle's Residual Value
To calculate your vehicle's residual value, multiply its full MSRP times its residual value percentage. The residual value percentage is determined by the bank that you are leasing through. (example: MSRP = 25,000 x 72% residual = 18,000 residual value).
(note that some banks will only allow consumers to residualize certain options or will place a cap on the amount of money that can be residualized for each option)
Step 3: Determine Your Vehicle's Total Depreciation
To determine your vehicle's depreciation, subtract its residual value from your capitalized cost. (example: $24,000 - $18,000 = $6,000 depreciation).
Step 4: Determine Your Vehicle's Monthly Depreciation
To figure out your car or truck's monthly depreciation, divide the total depreciation that you just calculated by the number of months that you are going to lease it for. (example: $6,000 / 36 = $166.67 monthly depreciation)
Step 5: Determine Interest Charges
To determine the interest portion of your monthly lease payment add your vehicle's capitalized cost and its residual value and then multiply the result times your bank's lease money factor. (example: $24,000 + $18,000 = $42,000 x .0038 = $159.60)
Step 6: Calculate Pre-Tax Monthly Payment
Finally, add the results from Step 4, the monthly depreciation, and Step 5, the monthly interest charge, to come up with your pre-tax monthly lease payment. (example: $166.67 + $159.60 = $326.27)
If you would like help, we'll need the following info about the vehicle you plan to lease:
Capitalized cost (negotiated price minus any downpayment)
Residual value percentage
Bank/Finance company's money factor
Lease term, in months
#2 of 173 Am I missing something Two dealers tell me this cant be true
Jan 19, 2010 (10:32 am)
Am I missing something . Two dealers where around this price per month
The other dealers where 40 dollars more per month on LEASE
Am I missing something? here below is the quote from NJ dealer. I have read the lease buying guide and used the calculator
2009 Infiniti Coupe AWD Journey with Premium and Navigation Packages
Internet Selling Price $39661.00
Total Savings $5164.00
Money Factor .00191
Cap cost reduction is 152.00
Residual .51 60%
Bank fee $595.00
Sales tax for 19002 9% (PA)
$499.42 per month
511.89 per month
#3 of 173 Re: Am I missing something Two dealers tell me this cant be true [chirostuff]
by Kirstie@Edmunds HOST
Jan 20, 2010 (8:48 am)
My calculations indicate that the two lower numbers you received didn't include the sales tax. You might call the lower-quoting dealers and check, but that's where I'm coming up with an extra ~$40 per month.
#4 of 173 Re: Am I missing something Two dealers tell me this cant be true [kirstie_h]
Jan 23, 2010 (1:14 pm)
#5 of 173 Re: How to Calculate Monthly Lease Payments [kirstie_h]
Feb 16, 2010 (11:27 am)
Thanks for the help. Here is what the dealer provide me regarding Lease info on a 2009 G37 Coupe with Nav and Premium packages:
Cap cost 39,946
Residual % 57%
39 months lease term
Dealer to pay off remaining lease payments of 2800.
Dealer said payments would come to 659.50 plus tax of 07%. This sound high to me as the car is a year old. Still new though. Any help, thoughts or comments>>>>
#6 of 173 Re: How to Calculate Monthly Lease Payments [artinflorida]
by Kirstie@Edmunds HOST
Feb 18, 2010 (12:04 pm)
The calculation doesn't seem high, but the cap cost seems high - I don't see the money factor there, but in any case, it appears that people are getting better deals on the 2009 G37 than $40K.
I really don't think this is your best deal. It sounds like you are currently leasing, and the lease is not yet over. How much longer do you have on that vehicle, and why get rid of it now?
#8 of 173 Re: How to Calculate Monthly Lease Payments [kirstie_h]
Mar 08, 2010 (11:09 am)
Please help calculate my payments. I live in Illinois and sales tax is based off sales price.
Honda Pilot EX-L
nothing down, taxes rolled in.
Due at signing 1st months, Doc Fee and License/Title
Cap Cost 30,854
money factor .00183
Term 36 months
#9 of 173 Re: How to Calculate Monthly Lease Payments [ppierce2]
Mar 08, 2010 (2:43 pm)
$396 based on the figures you posted. Taxes on 30854 [your rate] divide by 36 and roll into lease. In st. clair county in s.w. illinois that would add about $56 to the 396.
#10 of 173 Re: How to Calculate Monthly Lease Payments [kirstie_h]
Mar 13, 2010 (7:35 pm)
You are forgetting the Aquisition Fee that (I believe) all manufactures charge on leases. Honda charges 595.00 and that is probably typical.