Car Lease Calculator



 
 

Car Lease Calculator

This car lease calculator estimates your monthly payment for the vehicle you're thinking about leasing. Just input the data and the calculator does all the work for you.

If you want to compare leasing versus buying check out this lease vs buy calculator also.

Purchase price:
Down payment:
Trade-in allowance:
Sales tax percentage:
Term (in months):
New car interest rate (APR):
Car value at end of lease:
Monthly payment:
Capitalized cost:
Lease price:
Residual value:
Monthly depreciation fee:
Monthly lease fee:
Pre-tax montlhy payment:
Monthly sales tax payment:

The Basics Of Car Leasing

Car leasing is simply the rental of vehicle for an agreed period of time. It is a financing arrangement in which you pay a down payment, make monthly payments and maintain the car during the lease period.

Car leasing has become very attractive to consumers since it is a more affordable method of vehicle financing. Around 20% of the cars driven in the United States are leased cars. Though the monthly payments for car leasing is lower compared to a traditional auto loans, this method does not always work for everyone. Before you sign up a contract for a lease, it is essential that you check the benefits, criteria and the possible complications you may encounter during the lease period. It is also important that you check the monthly payment to find out if it suits your budget. This car lease calculator will give you an estimate of your monthly payment for the car of your choice.

Your Responsibilities As A Lessee

  • It is your responsibility to make monthly payments for the use of a vehicle during the lease period.
  • You agree to maintain the vehicle as specified in your agreement.
  • You must shoulder the payment of licenses, taxes and ensure that the vehicle insurance is up to date.
  • You must return the vehicle in a condition that is specified in your agreement at the end of the lease term.
  •  You agree to pay additional charges in case of damages and other incidents that are not stipulated in your lease agreement.

Benefits of Car Leasing

Easy On The Pocket
The greatest benefit of car leasing is it doesn’t require a big cash outlay since it doesn’t require huge down payment. The monthly payment is low compared to purchasing a new vehicle, thus, this strategy can easily fit in your monthly budget. The cash saved for choosing this option can instead be reinvested.

Smaller Sales Tax
When you consider leasing, there are some tax advantages. In some instances, the tax benefit is sometimes higher than the tax benefits earned from purchasing a car. When purchasing a new vehicle, sales tax is due immediately. While when you lease, sales tax is spread throughout the lease term since tax payments are only calculated from your monthly payments and on your capital cost reduction.

Drive An Expensive Vehicle For Your Money 
Since leasing will only require low monthly payments, you will get a chance to drive a more expensive vehicle without hurting your monthly household budget. When you get offers from car dealers, calculate your monthly payment using the car lease calculator to check if the car of your choice is perfect for your budget.

New Vehicle More Often 
It is easier to change vehicles at the end of the lease term. You need not worry about the sales value and disposal of your old car.

Warranty Coverage

Should there be a problem with your vehicle, your vehicle will always be covered under the manufacturer’s warranty provided that the lease is not more than 3 years or less and the mileage is not more than 60,000.

Before Signing The Lease Term

Before you sign the lease agreement, make sure that you understand all your responsibilities as a lessee and the terms stipulated in the contract. Try to ask the dealer to spell out all the do’s and don’ts in your vehicle to avoid disagreements. Lastly, verify the calculation of the dealer by using the car lease calculator.

Lease Calculator Terms And Definitions

  • Purchase Price – The capitalized cost of the vehicle after deducting the down payments or trade-in amount.
  • Down Payment – The initial amount paid to the dealer.
  • Term – The length of the lease in months.
  • Trade-in Allowance – The value of your old vehicle.
  • Sales Tax Percentage – The tax percentage you pay during the lease term.
  • New Car Interest Rate – The interest percentage of the loan.
  • Residual Value – The value of the car at the end of the lease period. This value is sometimes used in calculating the amount you need to pay for the car in case you want to purchase it at the end of the lease term.
  • Wear and tear – The stress on the car caused by normal use.
  • Depreciation Fee – The amount reduced from the value of your vehicle due to age, mileage and wear.

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