## Thursday, 22 January 2015

### Calculate Vehicle Lease Obligations

When leasing a automobile, it's vitally salient to calculate the monthly payments yourself.1. Convene all the obligatory figures to calculate your sublet payments. These admit the MSRP of the vehivle, the check cause/game percentage the hire is based on, the name of the rent and the residual charge the contract is based on.

Automobile dealerships Testament, Sure, calculate the payments for you, on the contrary the peerless design to constitute positive those calculations are fair is to create them yourself. Calculating charter payments is not as arduous as it looks provided you be versed what you're doing.

## Instructions

All of this hash can be fix online or by contacting the dealer or the bank financing the lease.

2. Calculate how much you will use of the car's value by multiplying the MSRP by the residual value and subtracting the product from the negotiated price of the car. If the MSRP is \$20,000, the residual value is 50 percent and the negotiated price is \$18,000, then you will be using \$8,000 of the car's value.

3. Break down the amount of the car's value into monthly payments by dividing it by the number of months in the lease. Continuing with the above example, if the lease term is 36 months, the payments would be \$222.22 (\$8,000/36).

4. Calculate the interest on the loan by adding the residual value of the car and negotiated price of the car and multiplying the sum by the money factor. In the above example assuming a money factor of .003, the calculation would look like this: (20,000 + 18,000) x .003 = 114. The interest portion of the monthly payment would be \$114.

5. Add the two portions of the lease payment together to receive the monthly lease payment less taxes and additional fees. (ex. 222.22 + 114 = 336.22)

6. Multiply the monthly lease payment by the state sales tax to receive the monthly tax payment and add that to the monthly lease payment.

7. Factor in any fees, security deposits anddown payments into your calculations for a more accurate lease estimate.