Manipulate Payment Lease For Free

Car leases often have lower monthly payments than auto loans, and you get to drive a new car every few years. Plus, you might even be able to negotiate your lease to get cheaper payments, higher mileage limits, or a lower buyout price.

Monthly Payment = Depreciation + Rent Charge + Taxes As we mentioned earlier, it's important to know all the factors that contribute toward calculating your lease, including your Residual, Money Factor, and Net Capitalized Cost. All of these values can change from vehicle to vehicle, and again from year to year.

First, let's look at the basics - the five figures you'll need in order to calculate a monthly lease payment: Residual Value = (MSRP) x (Residual Percentage) Monthly Depreciation = (Adjusted Capitalized Cost - Residual Value) / Term. Monthly Rent Charge = (Adjusted Capitalized Cost + Residual Value) x (Money Factor)

A car's residual value is the value of the car at the end of the lease term. The residual value is also the amount you can buy a car at the end of the lease. A residual percentage will be provided when signing the car lease agreement to help you calculate your car's value at lease end.

The interest rate (?money factor?) - another major factor that can be negotiated, especially if you have an excellent credit score (740 or higher).

You can lower your car lease payment by speaking with your leasing agent. You can also choose longer terms to pay less each month when you originate the lease. You'll pay more for the lease than if you agreed to shorter terms, but your monthly payments may be more manageable.

Dealerships often use a low monthly payment as a selling point to entice customers. However, you should always try to negotiate the vehicle's sales price, which is also its gross capitalized cost. By negotiating, you may be able to get an affordable monthly payment without having to resort to extending the lease term.