1. What is Walmart Lease To Own?

Walmart Lease To Own program in the Philippines allows customers to acquire products through installment payments with the option to own the item at the end of the lease term. It provides flexibility for those who may not have full upfront payment.

2. How Does the Calculator Work?

The calculator uses these 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 calculation separates the depreciation portion (value you're using) from the finance charges (cost of leasing).

3. Importance of Lease Calculation

Details: Understanding your lease payments helps budget effectively and compare different lease options to make informed financial decisions.

4. Using the Calculator

Tips: Enter the product price as capitalized cost, estimated residual value (if any), lease term in months, and the money factor provided by Walmart. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is a typical money factor for Walmart leases?
A: Money factors vary but typically range from 0.001 to 0.004 (equivalent to 2.4% to 9.6% APR).

Q2: How is residual value determined?
A: Residual value is the estimated value of the item at lease end, often set by Walmart based on product type and term length.

Q3: Can I purchase the item before lease end?
A: Most lease-to-own programs allow early purchase, but terms vary. Check your contract for details.

Q4: Are there additional fees not included here?
A: This calculator shows base payments. There may be taxes, insurance, or processing fees not reflected.

Q5: How does this compare to credit purchases?
A: Lease-to-own often has higher total costs than traditional credit but may have easier approval and no credit check.