1. What is High Mileage Lease Calculation?

The High Mileage Lease Calculator helps determine monthly payments for vehicle leases with above-average mileage allowances. It accounts for additional depreciation due to higher mileage.

2. How Does the Calculator Work?

The calculator uses these equations:

Where:

• \( Dep \) — Monthly depreciation amount ($)
• \( Fin \) — Monthly finance fee ($)
• \( MP \) — Total monthly payment ($)
• \( CC \) — Capitalized cost ($)
• \( RV \) — Residual value ($)
• \( \text{Mileage Adj} \) — Mileage adjustment ($)
• \( T \) — Lease term (months)
• \( MF \) — Money factor (decimal)

Explanation: The calculation separates the payment into depreciation (vehicle value loss) and financing costs.

3. Importance of Lease Calculation

Details: Accurate lease calculations help compare different lease offers and understand the cost impact of higher mileage allowances.

4. Using the Calculator

Tips: Enter all values in dollars except term (months) and money factor (decimal). Get the money factor from your lease agreement (often listed as 0.00XXX).

5. Frequently Asked Questions (FAQ)

Q1: What is capitalized cost?
A: This is the negotiated price of the vehicle plus any fees or add-ons being financed in the lease.

Q2: How is mileage adjustment determined?
A: The adjustment accounts for additional depreciation from higher mileage. It's typically $0.10-$0.25 per mile over standard allowance.

Q3: What's a typical money factor?
A: Money factors usually range from 0.0010 to 0.0040 (equivalent to 2.4% to 9.6% APR when multiplied by 2400).

Q4: Why add CC and RV for finance fee?
A: This represents the average amount financed over the lease term, as the balance declines from CC to RV.

Q5: How does term length affect payments?
A: Longer terms reduce monthly depreciation but increase total finance charges and may affect the residual value.