How does Mesa Leasing calculate a payoff?
Early payoffs are based on the number of remaining payments. Clients are often confused as to why after having made 12 payments in a 36 month contract, the payoff is just about what the equipment cost. Our payoff is based on the remaining payment stream calculated at a discount rate of 9%. As an example: Client leases a piece of equipment that costs $100,000 out the door. You add 10 points to a 36 month contract. His payments are $4,752 a month. The client makes 12 payments. What’s the payoff? If you came up with $104,017 (or thereabouts), you understand how to calculate a payoff.
