1. What is a 36 Month Lease Calculator?

The 36 Month Lease Calculator helps determine the monthly payment for a 3-year vehicle lease by calculating depreciation and finance charges based on capitalized cost, residual value, and money factor.

2. How Does the Calculator Work?

The calculator uses these lease formulas:

Where:

• \( Dep \) — Monthly depreciation amount ($)
• \( Fin \) — Monthly finance fee ($)
• \( MP \) — Total monthly payment ($)
• \( CC \) — Capitalized cost (vehicle price + fees)
• \( RV \) — Residual value (end-of-lease value)
• \( MF \) — Money factor (lease interest rate)

Explanation: The depreciation is spread evenly over 36 months, while the finance charge is based on the average amount financed throughout the lease term.

3. Importance of Lease Calculations

Details: Understanding these calculations helps consumers evaluate lease offers, compare deals, and negotiate better terms with dealers.

4. Using the Calculator

Tips: Enter the negotiated vehicle price as capitalized cost, the lease-end value as residual value (usually provided by dealer), and the money factor (often negotiable). All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: How is money factor related to interest rate?
A: Money factor can be converted to approximate APR by multiplying by 2400 (e.g., 0.0025 MF = 6% APR).

Q2: What's a good residual value percentage?
A: Typically 50-60% of MSRP for 36 months, but varies by vehicle. Higher residual means lower depreciation.

Q3: Are taxes included in this calculation?
A: No, this calculates base payment. Taxes and fees are usually added to this amount.

Q4: Why add CC and RV for finance charge?
A: The finance charge is based on average amount financed, which is approximately (CC + RV)/2.

Q5: Can I negotiate the capitalized cost?
A: Yes, this should be negotiated just like a purchase price, minus any down payment or trade-in.