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Look up the original value of the car in your lease terms or on the Kelley Blue Book website. Subtract the calculated depreciation value from the original value of the vehicle. This new result is the total residual value of the car.

How is the lease payment calculated?Start with the sticker price (MSRP) of the car.Take the MSRP and multiply it by the residual percentage.This equals the residual value.Then take the negotiated selling price of the car.Add in the fees to get the gross capitalized cost.Subtract your down payment and rebates.More items...

A vehicle's annual lease value is based on the fair market value of the vehicle when it is first available for personal use and is determined under an annual lease value table provided by the IRS.

The Money Factor is just a simple calculation derived from the interest rate. As discussed in the "Shopping for your Lease" section, money factors are set by the lending institutions and are not easily negotiated.

Yes, You Can When it comes to negotiating, leasing is just like buying, and that means that you should feel free to negotiate just as you would when buying a car.

How is the lease payment calculated?Start with the sticker price (MSRP) of the car.Take the MSRP and multiply it by the residual percentage.This equals the residual value.Then take the negotiated selling price of the car.Add in the fees to get the gross capitalized cost.Subtract your down payment and rebates.More items...

A decent money factor for a lessee with great credit is typically around 3% to 5%. If you have fantastic credit and you're offered a lease with a money factor higher than . 0025 (or 6% APR) then it may be worth your time to shop around.