1. What is Walmart Lease to Own Auto?

Walmart's lease-to-own auto program allows customers to lease a vehicle with the option to purchase it at the end of the lease term. The monthly payments consist of depreciation and finance charges.

2. How Does the Calculator Work?

The calculator uses the following equations:

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 vehicle's value loss spread over the lease term. The finance charge is based on the money factor (similar to interest rate).

3. Importance of Lease Calculation

Details: Understanding these calculations helps consumers compare lease offers, budget appropriately, and make informed decisions about vehicle financing options.

4. Using the Calculator

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

5. Frequently Asked Questions (FAQ)

Q1: What is a good money factor?
A: Lower is better. Typical rates range from 0.0010 to 0.0040 (equivalent to 2.4% to 9.6% APR).

Q2: How is residual value determined?
A: The leasing company sets RV based on vehicle make/model, term length, and projected mileage.

Q3: Can I negotiate the capitalized cost?
A: Yes, this is the vehicle's purchase price and can often be negotiated like a regular car purchase.

Q4: What happens at lease end?
A: You typically have the option to purchase the vehicle for the residual value, return it, or lease a new vehicle.

Q5: Are there mileage restrictions?
A: Most leases include annual mileage limits (typically 10,000-15,000 miles/year) with fees for excess mileage.