1. What is Semi Lease to Own?

Semi lease to own is a financial arrangement where monthly payments include both a depreciation component and a finance fee. This calculator helps determine the monthly payment structure for such agreements.

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 represents the value loss over the term, while the finance fee is the cost of financing the lease.

3. Importance of Lease Calculations

Details: Understanding these calculations helps compare lease offers, budget accurately, and negotiate better terms.

4. Using the Calculator

Tips: Enter all values as positive numbers. Capitalized cost and residual value should be in dollars, term in months, and money factor as a decimal (e.g., 0.0025).

5. Frequently Asked Questions (FAQ)

Q1: What is capitalized cost?
A: This is the negotiated price of the vehicle or asset being leased, plus any additional fees rolled into the lease.

Q2: How is money factor determined?
A: The money factor is set by the leasing company and represents the financing portion of your lease payment.

Q3: What's a good money factor?
A: Lower is better. To convert to approximate APR, multiply by 2400 (e.g., 0.0025 MF ≈ 6% APR).

Q4: Should residual value be high or low?
A: Higher residual value typically means lower depreciation and lower monthly payments.

Q5: Can I negotiate these terms?
A: Yes, all components (capitalized cost, residual value, money factor) may be negotiable to some degree.