The Consumers Guide to Auto Leasing
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Car Leasing 301 - Calculate Car Lease Payments

Figuring Our Your Monthly Car Lease Payments

  1. What is the Manufacturer’s Suggested Retail Price (MSRP) for your car?

    1. This is your vehicles sticker price, not including any additional charges as destination, delivery or any other fees or charges.
    2. Ex. $25,000

  2. What is your Base Cap Cost?

    1. Your base cap cost is the negotiated lease price for the vehicle. This will be the cars price you and the dealer agreed upon, which likely already includes any negotiated discounts or reductions from the sticker price. This is known as the Base Cap Cost in a vehicle lease agreement. (define: Adjusted Captilalized Cost)
    2. Ex. $23,500

  3. Are there any additional costs included in the lease agreement?

    1. Are there other costs as bank (acquisition) fees (define: acquisition fees), luxury tax, insurance, extended warranty, added options, etc. included in the price of the car you’re leasing or purchasing?

  4. What Cap Cost Reductions do you have?

    1. The cost of you lease is reduced by any payments you put down initially, such as a down payment or trade-in vehicle or credit. This may also include any rebates from the manufacturer.
    2. Ex. Down Payment = $2,100

  5. Calculating steps 1-4 above will give you your Adjusted (Net) Capital Cost. This is the Net Cap Cost that your lease payment is calculated.

    1. Your Adjusted (Net) Capital Cost (define: adjusted capitalized cost) is calculated by your Base Cap Cost plus (+) any additional costs incurred in the lease, less (-) and reductions or Cap Cost Reductions. This is referred most often as the Cap Cost.

Part I: Car Lease Calculator cont... Car Lease Calculator cont...


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