You can use this auto lease calculator for estimating month-to-month lease payments depending on total price of the vehicle and vice versa.
With the help of car leases, you are allowed to drive cars for specific period as you make your monthly payments till the end of the lease. It won't be wrong to consider it as your long-term car rental option.
Generally, upkeep and regular maintenance like oil changes and other similar stuff is covered by the warranties. Any expenses to replace the worn parts of the vehicle like tires or brakes may fall on the lessee. On the contrary, faults that are attributed to lessee will be on them. So, it is important that all lease terms are read carefully because maintenance rules can differ greatly from one lease to another.
There are mileage limits on most of the leases which penalize lessee if they drive the car beyond that limit. The penalties, however, range between 5-20 cents a mile that is driven above the limit.
Any auto lease calculator requires several values for the calculation of monthly lease amounts. Let's take a look at them.
. Capitalized Cost or Auto Price - It's possible for you to negotiate this price, the same way as you do when buying cars, in order to get a lease that is more affordable. In fact, negotiation with the car salesmen is the right way to go about it according to many experts just like the case with buying cars outright. And the potential lessee should only reveal that they're looking to get a vehicle on lease rather than buying it only after the salesmen agree on their desired figure.
. Money Factor - It is more like interest rate but it is specifically for the car leases. The money factor is used by the lessor as a method for leasing vehicles at rates that correspond to the credit history of each lessee. Money factor grows higher if lessee's credit history is not so great. Money factor is calculated by dividing APR on lease by 2400 or 24 depending whether it's expressed in percent or decimal.
. Lease Term - Lease term refers to the lease's length. Most of the leases are anywhere between 2-4 years and a wide majority lasts for three years. . Residual Value - This auto lease calculator requires you to enter the residual value as well. It is basically the lease-end value. Residual value is essentially the amount to buy the car once the lease ends. Residual values are set by the financial institutions issuing lease contracts. They make use of their expertise in guessing the car's worth by the end of lease. Difference between car's price and residual value gives the vehicle's depreciation after the lease and it is amortized throughout your lease loan. So, auto leases are often more affordable when it comes to slowly-depreciating vehicles as their residual value is also held by them.
The auto lease calculator here basically works by calculating two different values for you. In fact, there are two separate calculators. First is the normal lease calculator while the other is Monthly payment calculator. Both these calculators require a set of values to be given as input and as you hit the calculate button every single value related to the lease is calculated.
So, use this auto lease calculator with confidence and get better insights into your leases.