Quote:
Originally Posted by 4DRS55
(Net Capitalized Cost + Residual Value) x Money Factor is the formula used to get monthly finance charge.
|
With all due respect, this is far too simplistic of an explanation and not accurate. The Leasehackr Calculator is the best one I know since shows how payments vary by state.
But essentially: Your Negotiated Price - (MSRP x Residual Value) = the amount you must pay over the length of the lease.
Then: (The amount you must pay / # of months) * Money Factor (interest rate) = monthly lease payments before tax, license, fees, etc.
Hope this helps - there are some super sophisticated people on this forum but also some inexperienced people that I would hate to see confused.