# How to figure a lease

#### Car Lease Calculator Explanation

A lease calculator is important when leasing a car for a number of reasons. First, it allows consumers to **verify the correctness of a car dealer’s math** in a lease offer or lease contract. We are often asked what’s wrong with our calculator when the results don’t match a dealer’s. If the numbers entered into the calculator are *exactly* the same as the numbers used by a dealer in his calculations, the results will be *exactly* the same, down to the penny. Our car lease payment calculator uses the same industry-standard lease formula that dealers and lease finance companies use.

Second, a car lease calculator allows consumers to **determine how much car they can afford to lease**. based on “working backward” with the results. Plug in some values for MSRP and Cap Cost, with reasonable values for Cap Cost Reduction, Residual Value, and Money Factor, and see if the resulting monthly payment is one that you can afford. If not, go back and reduce MSRP and Cap Cost as many times as it takes to get the monthly lease payment within your budget.

Third, a lease calculator can help you **prepare for visiting**

**
**

** a dealer to discuss a possible lease deal**. Dealers like to discuss monthly payment, not lease price. Although you can force the discussion to focus on price, you must understand how price is going to affect monthly payment. A car lease calculator helps you do that. In that sense, it’s a great educational tool as well as a great aid for preparing to lease. Once you understand how the math of a lease works, by using the calculator, you’ll be better prepared to negotiate and handle lease deal discussions.

Finally, being able to manipulate the factors of a lease, such as Money Factor, Residual Percentage, Term, and down payment (Cap Cost Reduction), you can **determine the effects of changing lease variables**. For example, you can see the significant effect of making a down payment — much more significant that with a car loan. And how choosing to lease a car with a higher Residual Percentage lowers monthly payment. And how having a good credit score creates a lower monthly payment — because you qualify for a lower Money Factor.

Possible misspelled search terms: *leese calculater, car leasing calulater, calulator, leesing, caculator, calculatr, or car least calculator, auto leese calculator*

Source: www.leaseguide.com

Category: Credit

## Similar articles:

How to Figure Out How Much House You Can Afford

Unemployment and Social Security Benefits