1. What is a Car Lease Calculator?

The Detailed Car Lease Calculator helps you understand and calculate the components of your monthly lease payment, including depreciation and finance charges, based on key lease parameters.

2. How Does the Calculator Work?

The calculator uses standard lease payment formulas:

Where:

• \( Dep \) — Depreciation charge ($/month)
• \( Fin \) — Finance fee ($/month)
• \( MP \) — Monthly payment ($)
• \( CC \) — Capitalized cost ($)
• \( RV \) — Residual value ($)
• \( T \) — Lease term (months)
• \( MF \) — Money factor (decimal)

Explanation: The depreciation represents the vehicle's value loss during the lease, while the finance charge is essentially the interest payment.

3. Importance of Lease Calculation

Details: Understanding these components helps you negotiate better lease terms, compare different lease offers, and budget accurately for your vehicle expenses.

4. Using the Calculator

Tips: Enter all values in the specified units. The money factor is typically provided by the dealer (divide the APR by 2400 to convert to money factor).

5. Frequently Asked Questions (FAQ)

Q1: What is capitalized cost?
A: This is the negotiated price of the vehicle plus any additional fees or items you're rolling into the lease.

Q2: How is residual value determined?
A: The leasing company sets this based on the vehicle's expected value at lease end, expressed as a percentage of MSRP.

Q3: What's a good money factor?
A: Money factors vary but generally below 0.0020 (equivalent to ~4.8% APR) is considered good.

Q4: Are there other lease fees?
A: Yes, leases typically have acquisition fees, disposition fees, and possibly other charges not included in this calculation.

Q5: How can I lower my monthly payment?
A: You can negotiate a lower capitalized cost, choose a longer term, or find a vehicle with better residual value.