Car Lease Payment Calculator

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1		Based on lease calculations in CA - California			There are variations on how each state writes lease contracts. Barring a few nuances like double taxation in few states, the final OTD cost shown in this sheet should be the same number for all states.
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3					Description
4	Input	MSRP of Vehicle	$47,439.00		The MSRP on the window sticker
5	Input	Bank Acquisition Fee	$650.00		The leasing company charges this fee to draw up your lease.
6	Input	Dealer Add ons	$0.00	Negotiable	Any add-ons installed by the dealer (DIO), This is not the factory installed (FIO) or port installed (PIO), which are already part of MSRP
7	Input	Extended Warranty	$0.00		Extended warranty costs, if any
8		Capitalized Taxes	$1,861.00
9		Doc fee	$85.00
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11		Sale Price	$50,035.00		Total price of the car leased, also called "capitalized cost", or cap cost
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13	Input	Cap Cost Reduction	$6,500.00	Negotiable	Total of rebates and discounts received. E.g the 6500$ lease credit on RAV4 Primes
14	Input	Down payment	$5,000.00	Negotiable
15		Adjusted Capitalized Cost	$38,535.00		The adjusted cap cost after rebates and discounts
16	Input	Residual (percentage in decimal)	0.580000		The % value of vehicle at the end of lease term. Pre-determined by dealer based on past market data for this vehicle model
17	Input	Money Factor	0.0033	Negotiable	The cost of lease borrowing to you. Dealer is not always transparent about this number, but it will be in the lease agreement
18	Input	Lease Term (Months)	36		The term of the lease in months
19		Effective Interest Rate	7.92		The effective interest rate to you for financing through leasing
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21		Depreciation Payment
22		Cap Cost	$38,535.00		Same as C11. The adjusted cap cost on which depreciation is calculated
23		Residual Value in Dollars	$29,020.30		The Residual value of vehicle in USD, calculated from the residual % in C12
24		What you’re financing	$9,514.70		The amount you are financing through the lease
25		Months	36		Copied from C14. The term of the lease in months
26		Total Per Month	$264.30		The depreciation component in the monthly payment before taxes
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28		Finance Charge Payment
29		Cap Cost	$38,535.00		Same as C9. The adjusted cap cost on which finance charges are calculated
30		Residual Value	$22,350.30		The Residual value of vehicle in USD, calculated from the residual % in C12
31		Sum to be multiplied by MF	$60,885.30		Add the Cap cost and Residual value, on which interest is calculated
32		MF	0.0033		The money factor. Same as C13.
33		Total added	$200.92		The finance charge (a.k.a "rent charge") component in the monthly payment before taxes
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35		Monthly Lease Payment	$465.22		The monthly lease payment before taxes, sum of depreciation and finance charges
36	Input	Sales Tax	10.25%		Your local tax rate
37	After Tax	Total Monthly Payment	$512.90		The monthly lease payment after taxes
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39	After Tax	Amount Due on Lease Signing
40	Input	Registration + License Fees	$695.00		The license and registration fees for the vehicle
41	Input	Doc Fee	$118.93		charges for car dealerships to process the vehicle's paperwork
42		First Month Lease Payment	$512.90		The first monthly payment is due on lease signing
43		Tax on Cap Cost Reduction	$666.25		Taxes on the cap cost reduction amount. May vary by state, change this to 0 if your state does not tax discounts and rebates
44		Amount to be paid in cash	$1,993.08		Total of amounts due on lease signing
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46	After Tax	Cost to Own
47	Input	Months into Lease	1		The number of months lease payments have been made (start with 1). Play with this number to see how OTD price changes
48		Total $$ of Monthly Lease Payments	$0.00		Total of monthly payments made (not including month 1 paid at signing)
49		Lease buyout price	$38,270.70		The approx lease buyout price right now
50		Sales Tax	$3,922.75		The sales tax calculated on the buyout price of the lease
51		Total lease-to-own OTD cost	$49,186.53		The total OTD price of the vehicle after lease buyout, including the sales tax paid during title transfer at DMV
52		Alternate Option - Cash buy OTD cost	$55,344.32		For comparision, the OTD price of vehicle if bought with cash, and not going via lease
53		Lease savings	$6,157.79		(positive number) Leasing is better than buying, (negative number) Buying with cash is better than leasing
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56		Depreciation: ((Capitalized Cost - Residual Value) / Number of Months)
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58		Finance Charge: ((Capitalized Cost + Residual Value) * Money Factor
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60		Payment = Depreciation + Finance charge.
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62		Money factor: This is the interest rate. It is always actual interest rate / 2400. So 4% = 0.0016 and 0.9% = 0.000375. The lower (more zeroes) the better!
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64		Residual Value: Total value at the end of the lease or the amount you'll pay to purchase it at the conclusion of its lease term
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66		Lease buyout price = Residual Value + (Depreciation * N), where N = the number of remaining unpaid months on the lease
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