Buying your own vehicle can be expensive, so many people lease a car to cut costs. But when you lease a car, you are not necessarily going to be driving the same model you had before. You may even have to deal with extra fees and charges, depending on your lease agreement.
Calculating the cost of a lease
Using a car lease calculator can help you figure out how much you can afford to pay for a lease. It can also help you prepare for negotiating a lease. It helps you understand how your monthly payments will change during the lease period, as well as what your final payment will be.
If you are leasing a car, you will be charged an upfront payment, usually called a down payment. The amount will vary, depending on the vehicle you choose. You can also negotiate a lower down payment.
Another fee is the money factor, which is compensation for the lease company. This is expressed as an interest rate. The higher the money factor, the more expensive the lease. The lessor’s money factor is usually based on your credit history.
The final cost of leasing a car depends on the residual value, the term, and the money factor. The residual value is the expected value of the car at the end of the lease. You can calculate the residual value using the vehicle’s MSRP.
The term of the lease can be up to 36 months. The average lease runs between two and …How to Find the Best Deals on Car Leasing Online Read More