Auto Lease Payment Calculator

Automobile Leasing – Evaluate your options

auto-lease-calculator

Vehicle leasing is the leasing (or the use of) a motor vehicle for a fixed period of time. It is commonly offered by dealers as an alternative to vehicle purchase but is widely used by businesses as a highly cost-effective method of acquiring (or having the use of) vehicles for business, without the usually needed cash outlay. The key difference in a lease is that after the primary term (usually 2,3 or 4 years) the vehicle has to be returned to the leasing company for disposal.

Leasing an automobile instead of buying it can be a good option in many circumstances. We have carried a different post, where you compare the lease vs buy decision.

Automobile Lease Payment Calculator

Here we present a simplified version of the lease payment calculator, which allows you to calculate you monthly lease payment requirements and also calculates the total payments, you will be making in the entire lease period.

Terms used in the Lease Payment Calculator

Here is a detailed explanation of different terms used in the above lease payment calculator.

  1. MSRP: This is the Manufacturer’s Suggested Retail Price, also called the sticker price of the car.
  2. Base Cap Cost: This is the negotiated price of the car, which is usually less than the MSRP or sticker price
  3. Dealer Acquisition Fee: Acquisition fees usually range from $250 to $750. This fee is included in every lease agreement.
  4. Extended Warranties: Additional costs associated with any other features outside of the lease, such as an extended warranty.
  5. Down Payments: Includes cash or other allowances that pay down the capitalized cost of the car.
  6. Trade In Allowances: Any trade in allowance the dealer might offer you for an existing vehicle.
  7. Net Capitalized Cost: The net capitalized cost associated with the car lease.
  8. Residual Value: If you know the actual residual value, then enter that number here or else the sheet will calculate a value.
  9. Money Factor: There is a relationship between the money factor and the APR. If you know the money factor, then enter the value here. In case, you do not know the money factor, then it can be calculated by dividing the APR by 2400.
  10. APR: Effective APR on the lease.
  11. Term of Lease (Months): The term must be 24, 36 or 48 months.
  12. Sales Tax: State sales tax (if any) in your state.
  13. Depreciation: Total depreciation on the car, which is the net capitalized cost minus the residual value.
  14. Finance or Rent Charge: The rent charged on the money borrowed over the term of the lease.
  15. Sales Tax on Lease: State sales tax due on the lease.
  16. Total of All Payments: Total of all money due on the lease, excluding upfront money such as capitalized cost reductions.
  17. Total Lease Payment: Total costs associated with the lease itself.
  18. Monthly Lease Payment: Monthly payment associated with the lease.
  19. Sales Tax on Lease Payment: Sales tax on the monthly lease payment.
  20. Total Monthly Lease Payment: Your total monthly lease payments over the term of the lease.
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Disclaimer

Lots of approximations and assumptions have been made while developing the calculators.

Please make your own calculations before making any financial decision.