1. What is a Lease Payment Schedule?

The lease payment schedule breaks down your monthly car lease payment into depreciation and finance components. Understanding these components helps you evaluate lease deals and negotiate better terms.

2. How Does the Calculator Work?

The calculator uses standard lease 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 covers the vehicle's value loss during the lease, while the finance fee is essentially the interest charge.

3. Importance of Lease Calculations

Details: Understanding these calculations helps you compare lease offers, identify excessive markups, and determine if leasing makes financial sense compared to buying.

4. Using the Calculator

Tips: Enter all values in dollars except term (months) and money factor (decimal). Money factor can be converted from APR by dividing by 2400.

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 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: Lower is better. Rates vary but 0.0010-0.0020 is typical. Multiply by 2400 to compare to APR.

Q4: Can I negotiate these terms?
A: Yes, you can negotiate capitalized cost, and sometimes money factor. Residual is usually fixed.

Q5: Are there other lease fees?
A: Yes, most leases have acquisition fees, disposition fees, and possibly security deposits not included here.