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What Is the Cost to Lease a Car? The average car lease costs $487 per month. In comparison, the average car payment for a new car is $548. This means that it may be cost-effective for many families to lease cars if they want to get behind the wheel of a brand-new model.

The formula is quite simple ? you just multiply the annual lease payment by the present value factor, and that results in the net present value of future minimum lease payments, which is recorded on the balance sheet as the lease liability (and ROU asset).

Finance Fee = ( Net Cap Cost + Residual ) × Money Factor It's simply a way of calculating the average amount financed without using complicated constant-yield annuity business formulas (for more details, click here). This is the method used by all lease companies and dealers.

Leasing is a great option if you know you'll be changing vehicles in the near future. For example, if a baby is on the way. Vehicles lose most of their market value in the first few years after purchase. Depreciation is typically 60% after five years, and 30% in the first year alone.

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.

The latest data from the Power Information Network (PIN) pegs the average current monthly payment on a new vehicle at $570 a month for a loan, $490 for a lease. That $570 a month loan payment represents 18 per cent of the average Canadian's take-home pay. If you lease, it's 15.6 per cent of take-home.

How much is a lease on a $45,000 car? Car lease offer ACar lease offer BLease term3 years4 yearsInterest rate6.99%7.99%Monthly payment$683.86$697.46Total cost$24,618.96*$33,478.084 more rows ?