Auto Lease Payment & Money Factor Calculator
Calculate monthly car lease payments, depreciation charge, rent charge finance fee, sales tax, money factor to APR conversion, and total lease expenditure.
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Frequently Asked Questions
What is a lease money factor and how do you convert it to APR?
The money factor (lease factor) is the interest rate financing formula used by car dealerships. To convert a money factor into an annual percentage rate (APR), multiply it by 2,400. For example, a money factor of 0.0025 × 2,400 = 6.0% APR.
Why should you avoid putting a large down payment on a car lease?
If a leased vehicle is totaled in an accident or stolen during the lease, gap insurance pays the leasing company the remaining balance, but your cash down payment is permanently lost. Experts recommend putting $0 down on a lease whenever possible.
What is vehicle residual value?
Residual value is the estimated wholesale worth of the vehicle at the end of the lease term, established by the lender as a percentage of original MSRP. Higher residual percentages result in lower monthly depreciation charges and lower payments.
What are acquisition and disposition fees?
An acquisition fee ($595 to $995) is charged by the bank to establish the lease. A disposition fee ($350 to $500) covers cleaning and auction costs when returning the vehicle at lease completion unless you purchase the vehicle or lease another car from the same brand.