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How Much Is a Lease Payment OR

How Much Is a Lease Payment OR

How Much Is a Lease Payment

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The lease payments for various automobiles can vary quite a bit. From a high-end luxury car to an economy car, there's a lot to compare. How do you make sure you're getting the most affordable lease payment?

Payment

The agreement that you’ll sign outlines the length of the lease, your monthly payments, the maximum number of miles you can drive per year, and other terms. When the lease ends, you’ll typically have the option of purchasing the vehicle or simply returning it. If you return the car, the dealer will expect it to be in good shape. If it has any damage beyond the expected wear and tear, you’ll have to pay more money to cover it.

The cost to lease a car varies based on the make and model you select, but monthly payments are typically lower to lease a new car than if you took out a loan to buy the same car. Monthly lease payments are calculated by adding up how much the car is expected to depreciate, rent charges (similar to an interest rate on an auto loan), taxes and fees and dividing that total amount by the number of months in the lease contract. (Source: www.creditkarma.com)

Year

Leases generally impose a limit on how much you can drive the leased vehicle per year, with additional payments as penalties if you surpass it. This is because the amount driven affects Depreciation, so more kilometres on the odometer will cause it to be worthless. Since the Depreciation for the leased vehicle is set at the start to determine your payments, it will be based off of a forecasted amount driven over the term of the lease. Leases generally impose a limit on how much you can drive the leased vehicle per year, with additional payments as penalties if you surpass it. This is because the amount driven affects Depreciation, so more kilometres on the odometer will cause it to be worthless. Since the Depreciation for the leased vehicle is set at the start to determine your payments, it will be based off of a forecasted amount driven over the term of the lease. (So

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 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))

 

 

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