FutureStarr

How to Calculate Lease Price

## How to Calculate Lease Price

Is it time to lease a new car or truck? You might pay more than the manufacturer’s initial asking price. Here are three different methods to calculate the lease price of a used car or truck.

### Car

via GIPHY

Residual value, sometimes called salvage value, is an estimate of how much an asset will be worth at the end of its lease. It is most commonly associated with car leasing. As an example, a car worth \$30,000 that is leased for 3 years can have a residual value of \$16,000 when the lease ends. Residual value is not exclusive to car leases, but can be leases of any type of asset, as long as it depreciates and can be sold at value once again. For most assets, the longer the lease period, the lower the residual value. One exception to this is real estate assets, which may have higher residual values after the lease period. The term "residual value" is also often used to refer to the value of an asset after depreciation. For more information or to do calculations involving depreciation, use the Depreciation Calculator.

Auto leases enable people to drive new cars for a short term while under warranty, and without the financial burden associated with new car purchases. However, it generally costs more to lease a new car for a specific time period than it does to own it (assuming the cost of ownership is prorated over its expected life). Leasing used cars is possible, but not as prevalent. There are many factors to consider in an auto lease, such as the initial down payment, the amount of the monthly payment, the term of the lease, and the average accumulated miles in a year. One characteristic that is unique to car leasing is something called the money factor, which is an alternative method of presenting the amount of interest charged on a lease with monthly payments. Money factor, sometimes called "lease factor" or "lease fee," can be translated into the more common annual percentage rate (APR) by multiplying it by 2,400. (Source: www.calculator.net)

## Related Articles

• #### How to Calculate Square Footage for Tile Backsplash OR

July 05, 2022     |     Shaveez Haider
• #### 5 of 18 Is What Percent ORR

July 05, 2022     |     Bilal Saleem
• #### How Many Ml in a Liter

July 05, 2022     |     Mohammad Umair
• #### Compare Fractions Calculator OOR

July 05, 2022     |     Bushra Tufail
• #### A 2 Fraction Calculator

July 05, 2022     |     m aqib
• #### 9 Is What Percent of 15 OR

July 05, 2022     |     Jamshaid Aslam
• #### A 6 2 1 2 Scientific Calculator

July 05, 2022     |     Shaveez Haider
• #### Clear Calculator,

July 05, 2022     |     Jamshaid Aslam
• #### Calculator Calculator Calculator,

July 05, 2022     |     Jamshaid Aslam
• #### A 31 Is What Percent of 20

July 05, 2022     |     Shaveez Haider
• #### C Calculator

July 05, 2022     |     Faisal Arman
• #### 6 33 as a percentage

July 05, 2022     |     sheraz naseer
• #### How to Get Fractions on a Calculator

July 05, 2022     |     Muhammad Waseem
• #### A Scientific Calculator to Use

July 05, 2022     |     sheraz naseer
• #### 15 35 Percentage ORR

July 05, 2022     |     Bilal Saleem