Add your company website/link
to this blog page for only $40 Purchase now!Continue
FutureStarrA Leasing Monthly Payment Calculator
Take the time to accurately calculate monthly payment! We’ll help you decide which plan is best for you.
Leasing or buying a car is an important and potentially complex decision, and the Auto Lease Calculator can help. Included underneath the calculated lease information is data conveyed as if the car was purchased instead of leased. Right off the bat, it is easy to see that upfront payments and monthly payments are higher for purchased cars. The last thing that we need to add into the payment is tax. Lease taxation varies greatly by state. For this example, we will use Minnesota. In Minnesota, tax is levied on the lease payment. This means that we need to calculate the tax for each lease payment and add it to the payment. Some other states tax on the full cost of the lease and require the tax upfront. Some states even tax on the full selling price of the vehicle, creating a huge tax bill and very expensive leases.
Add the monthly depreciation ($161.11) to the monthly finance charge ($30.20) for a base monthly payment of $191.31. Note that this payment does not include tax or fees. A standard lease like the one we are calculating here charges the first payment and fees upfront at lease inception. Let’s plug our values into the formula below: (Source: www.buerklehonda.com)
This calculator is a self-help tool. The information provided is for illustrative purposes only, and is not an offer to lease or lend. You must qualify for credit from a dealer/lender. Tax, title, license and other fees and finance charges are not included. For example, other fees may be imposed in addition to the down payment, and a security deposit may be required. An extra charge may be imposed at the end of the lease term if your liability (if any) is based on the difference between the residual value of the automobile and its realized value at the end of the lease term.
The residual is a value decided by the bank or leasing company. It’s just an prediction, and the vehicle’s actual value at the end of your lease will probably be either higher or lower than the residual. Banks estimate residual based on the vehicle you are leasing, the term length, and mileage. For example, a vehicle that’s driven 15,000 miles per year for 3 years (total 45,000 miles), will be worth less than the same vehicle if it’s driven only 10,000 miles per year (total 30,000 miles). (Source: www.buerklehonda.com)