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About This Calculator
Compare monthly car lease payments, money factors, capitalized cost reductions, and residual values against 48-72 month auto loan financing.
Frequently Asked Questions
How do you convert a lease Money Factor to an equivalent APR?
Multiply the Money Factor by 2,400. For example, a money factor of 0.0025 multiplied by 2,400 equals a 6.0% annual percentage rate (APR).
Why should you avoid putting large down payments on a car lease?
If your leased car is stolen or totaled in an accident within the first few months, insurance pays the leasing company (the car owner) the market value. Your capitalized cost reduction cash down payment is permanently lost and never refunded by insurance or gap coverage.
What is car residual value in a lease contract?
Residual value is the fixed, non-negotiable dollar amount the vehicle is projected to be worth at the end of the lease term based on agreed mileage (e.g. 10k or 12k miles/yr). It is the price you can buy the car for when the lease expires.
Is buying or leasing cheaper in the long run?
Buying and keeping a car for 7 to 10 years is dramatically cheaper than perpetually leasing. Leasing lowers your monthly payment during the initial 36 months, but you never accumulate equity or reach zero-payment years.