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Auto Lease Calculator - Monthly Payment & Lease Terms Guide

Estimate your monthly car lease payments. Learn about money factors, residual values, and how to decide if leasing is a better financial move than buying.

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Auto Lease Calculator: Navigating the Complexities of Car Leasing

Leasing a vehicle can be an attractive option for those who want to drive a new car every few years with a lower monthly payment. However, the math of a lease is often more complicated than a standard loan. This Auto Lease Calculator helps you break down the monthly cost, including the key variables that dealerships often leave in the fine print.

1. How a Lease is Calculated

Unlike an Auto Loan, where you pay for the entire value of the car, a lease only charges you for the Depreciation—the difference between the price today and the expected value at the end of the lease.

  • Residual Value: The estimated value of the car after the lease ends.
  • Money Factor: The "Interest Rate" of the lease (multiply by 2,400 to get the APR).

2. Leasing vs. Buying

If you aren't sure which is right for you, compare your lease estimate to our Loan Calculator. Leasing is often ideal if you drive fewer than 12,000 miles per year and want a predictable Percentage of your income tied to your vehicle. For a deeper look at your long-term repayment, you can also view an Amortization Schedule for a comparable purchase.

3. FAQ

Q: What is a "Capitalized Cost Reduction"? A: This is fancy terminology for your down payment. The more you put down, the lower your monthly payment, but be careful—if the car is totaled, you might lose that down payment entirely.

Q: Can I negotiate a lease? A: Yes! You can negotiate the "Cap Cost" (the price of the car) and sometimes even the money factor.

Conclusion

Leasing is a lifestyle choice as much as a financial one. Use this tool to ensure you are paying a fair price for your next vehicle. Enter your lease details above to start.