1. What is Lease To Buy Car Calculator?

The Lease To Buy Car Calculator helps you understand the components of your car lease payment and the total monthly payment you can expect. It breaks down the payment into depreciation and finance charges.

2. How Does the Calculator Work?

The calculator uses these formulas:

Where:

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

Explanation: The depreciation is the value the car loses during the lease term, while the finance charge is essentially the interest payment on the lease.

3. Importance of Lease Calculation

Details: Understanding these components helps you negotiate better lease terms, compare different lease offers, and make informed decisions about leasing versus buying.

4. Using the Calculator

Tips: Enter all values in the required format. Capitalized cost is the negotiated price of the vehicle. Money factor is often provided by the dealer (divide APR by 2400 to convert to money factor).

5. Frequently Asked Questions (FAQ)

Q1: What's a good money factor?
A: Lower is better. Typical money factors range from 0.0010 to 0.0040, which equates to 2.4% to 9.6% APR.

Q2: How is residual value determined?
A: The leasing company sets the residual based on the vehicle's expected depreciation over the lease term.

Q3: Can I negotiate the capitalized cost?
A: Yes, this is the price of the car and can often be negotiated down from the MSRP.

Q4: What's a typical lease term?
A: Most leases are 24, 36, or 48 months. Longer terms usually have lower monthly payments but higher total cost.

Q5: Are there other fees not included here?
A: Yes, this calculates the base payment. You may also have acquisition fees, taxes, and other charges.