1. What is Walmart Lease To Own?

The Walmart Lease To Own program for vehicles allows customers to lease a vehicle with an option to purchase it at the end of the lease term. This calculator helps estimate the monthly costs associated with 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 vehicle's value loss over time, while the finance fee is the cost of borrowing. The monthly payment is the sum of these two components.

3. Importance of Lease Calculations

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

4. Using the Calculator

Tips: Enter the vehicle's capitalized cost (negotiated price), estimated residual value (end-of-lease value), lease term in months, and the money factor (provided by the lessor). All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is a money factor?
A: The money factor is essentially the interest rate expressed differently. To convert to approximate APR, multiply by 2400.

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

Q3: Are there other fees not included here?
A: Yes, this doesn't include taxes, registration, acquisition fees, or other potential charges that may apply.

Q4: Can I negotiate the money factor?
A: Typically no, as it's set by the leasing company based on creditworthiness, though you may qualify for better rates with excellent credit.

Q5: What's a good lease deal?
A: Generally look for low money factor, high residual percentage, and the ability to negotiate capitalized cost below MSRP.