Calculate Lease Costs
Provided you are in the mart for a current vehicle, you might envisage leasing instead of buying. Some of the benefits of leasing a machine contain a lower down bill, lower monthly payments, less taxes, fewer continuation bills and the faculty to handle a different machine while staying within your budget. Before you dawn looking, it is a fine thought to differentiate how still you can afford. Then, with some basic maths, you can end the agreement costs of a particular vehicle.
Instructions
1. Good buy away the manufacturers suggested retail worth of the vehicle in which you are interested by visiting the manufacturer's website or other car value sites. Subtract your down payment or trade-in amount from the sticker price. This amount is your net cost.
2. Contact the dealer to find out the interest rate, called the Money Factor, besides as the Residual Percentage rate. Multiply the residual percentage by the MSRP to receive your residual amount.
3. Subtract the residual amount from the net cost. Divide the difference by the number of months in the lease. For example, if the residual percentage multiplied by the MSRP is 15,000 and the MSRP is $20,000, the difference would be 5,000. Therefore you would divide 5,000 by the length in months of the lease. This amount is the monthly depreciation fee.
4.5. Add the monthly depreciation fee and the monthly finance fee to calculate your monthly lease costs.
Determine the finance fee by adding the sticker price and the residual amount. Multiply the total by the interest rate. This will be the monthly finance fee.
