How Do You Calculate Car Lease Payments?
When leasing a car, it’s vitally important to calculate the monthly payments yourself. Car dealerships will, of course, calculate the payments for you, but the only way to make sure those calculations are correct is to do them yourself. Calculating lease payments is not as hard as it looks if you know what you’re doing. Gather all the necessary figures to calculate your lease payments. These include the MSRP of the car, the money factor/interest rate the lease is based on, the term of the lease and the residual value the lease is based on. All of this information can be found online or by contacting the dealer or the bank financing the lease. Calculate how much you will use of the car’s value by multiplying the MSRP by the residual value and subtracting the product from the negotiated price of the car. If the MSRP is $20,000, the residual value is 50 percent and the negotiated price is $18,000, then you will be using $8,000 of the car’s value. Break down the amount of the car’s value i
