The first step is to enter the details of the proposed car lease in the fields above:
- Vehicle Price - The price that you will pay for your vehicle
- Down Payment - The amount of money that you will be putting down yourself on the lease
- Trade In - If you will be trading in your current car, put it's expected value here
- Owed on Trade - If you will be trading in and owe money on that vehicle, enter the amount here
- Residual Value - This is the amount you expect the car to be worth at the end of the lease
- Money Factor - This is the number used to calculate lease payments, mouse over the label in the calculator for a full explanation
- Sales tax - The amount of sales tax levied in your area
- Term (Months) - The number of months that your lease will run over
Once you enter your details click "Calculate" and your lease information will be generated.
Understanding the Results
There are two sections in the results:
This section gives you a brief summary of the proposed car lease which includes the expected monthly payment and the total cost of the lease. If you aren't worried about specifics then this should be all you need.
This section breaks the monthly payment down into its 3 components. Depreciation Charge, this covers the loss in value of your car over the term of the lease. Finance Charge, this is like interest on a loan and pays the leasing company for using their money. Tax, this is the sales tax paid to your (usually) state government.
While this calculator should be highly accurate and give you a solid idea about the costs of your proposed car lease, it is not professional advise and should not be relied upon to make your final purchasing decision. Always talk to your lease provider directly and fully understand what you are getting into before signing a contract.