1. What is Lease To Buy House Calculation?

The Lease To Buy calculation helps determine the monthly payments for a lease-to-own property arrangement in Malaysia. It breaks down the payment into depreciation and finance components.

2. How Does the Calculator Work?

The calculator uses these formulas:

Where:

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

Explanation: The depreciation represents the portion of the vehicle's value you're using up each month, while the finance fee is essentially the interest charge.

3. Importance of Lease To Buy Calculation

Details: Understanding these calculations helps you evaluate lease-to-buy options, compare different offers, and budget accurately for your property purchase in Malaysia.

4. Using the Calculator

Tips: Enter all values in RM (Malaysian Ringgit). The money factor is typically provided by the leasing company - you may need to ask for this value specifically.

5. Frequently Asked Questions (FAQ)

Q1: What is a typical money factor in Malaysia?
A: Money factors vary but typically range from 0.001 to 0.005 in Malaysia. This equates to roughly 2.4% to 12% APR when multiplied by 2400.

Q2: How is residual value determined?
A: The leasing company sets the residual value based on the property's expected value at lease end, considering depreciation rates.

Q3: Can I negotiate the money factor?
A: Yes, money factors are often negotiable, especially if you have good credit. Compare offers from multiple lenders.

Q4: What's included in capitalized cost?
A: This includes the property price plus any fees or add-ons, minus any down payment or trade-in value.

Q5: Are there other fees in lease-to-buy?
A: Yes, there may be acquisition fees, documentation fees, and possibly a purchase option fee at lease end.