Car Lease Calculator
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- Good (660-719)
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- Poor (619 or less)
Please enter vehicle price and interest rate that are greater than 0, and make sure your down payment is less than the vehicle price.
Some dealers may present you with a money factor when you lease a car. What is it? A money factor is the alternative method of presenting the interest rate of car lease. Money factor equals the annual interest rate (APR) divided by 2,400. For example, if your interest rate is 5 percent, then your money factor is 5 divided by 2,400, or 0.00208 as the money factor; if your money factor is 0.00275, then your interest rate is 0.00275 multiplied by 2,400, which is 6.6 percent.
Ask your dealer to get the accurate residual value
Residual value, or resale value, determines how much you should pay monthly. The price may vary considerably according to car makes and models. Ask your dealer what the actual residual value is for the car you are considering.
How is sales tax charged at the start of lease?
Typically the upfront sales tax is charged on the down payment amount in most of the U.S. states. However, there are six states, Georgia, Illinois, Minnesota, New York, Ohio and Texas, that require you to pay a sales tax at the start of a lease, based either on the sum of all lease payments or on the full sale price of the vehicle. It means a significant amount of sales tax should be paid up front. If you are leasing a car in these six states, be prepared for the huge upfront cost.