How it Works
1. Depreciation Fee = (Net Cap Cost - Residual) / Term.
2. Finance Fee = (Net Cap Cost + Residual) * Money Factor.
3. Monthly Payment = Dep + Finance + Tax.
What is Auto Lease Calculator?
Calculates lease payments based on negotiated price, residual value, and money factor. Unlike buying, leasing pays for the depreciation over the term.
Step-by-Step Guide
- Price: Negotiated vehicle price.
- Residual: Value at lease end.
- Rate: Money Factor (APR/2400).
- Term: Lease months.
Example
Input: $30k Car, 50% Residual, 36mo
Result: $350/mo
FAQ
What is Money Factor?
Interest rate presented as a decimal. MF x 2400 = APR.
What is Residual Value?
The car's predicted value at the end of the lease, set by the lender.
Should I put money down?
Generally no. If the car is totaled, that money is lost.
Mileage limits?
Exceeding limits results in heavy fees (e.g., $0.25/mile).
Gap insurance?
Usually included in leases to cover theft/total loss.
Conclusion
Leasing offers lower monthly payments but no equity. Pay attention to the 'Money Factor'—dealers often mark this up. Multiply Money Factor by 2400 to see the equivalent APR.