Home | List of Articles | Submit an Article | Contact Us

Calculating Car Lease Payments - Online Lease Calculator Makes It Easy

One of the first questions that comes to mind when thinking of leasing a car is: "What will my monthly lease payment amount be?" or "How much can I save by leasing when compared to buying?"

Getting the answers can be as simple as using an online lease calculator such as the Lease Calculator from LeaseGuide.com, which calculates payments, finance charges, taxes, and total lease costs — by walking you through a number of easy steps in which you answer questions and input information about your lease.

Lease payment calculators use a standard leasing industry payment formula to determine monthly payment amount. Additional calculations are performed to determine other costs.

Even though you may not know some of the factors you need to plug into the calculator, you can guess or make some assumptions. Then you can go back and change some of the factors to see how it affects the results. In this way, you can play with the calculator to get the answers you want.

If you have all the figures about a specific lease deal from your dealer — lease price (cap cost), down payment (cap cost reduction), lease-end value (residual), length of lease (term), and finance rate (money factor) — you can check the honesty of your dealer's payment calculations by using an online lease calculator. A dealer's figures should exactly match yours. If not, then the dealer is using numbers that he has not accurately disclosed to you. If you both are using the same numbers as input to your calculations, the results will be precisely the same — to the penny.

If you want to compare the cost of leasing to the cost of buying, use a Lease vs. Buy Calculator. Based on the input figures that you provide, you can easily see the difference between buying and leasing.

Lease payments are always smaller than loan payments for the same vehicle. However, this does not necessarily mean leasing is right for you, nor does it mean that a specific lease is a good deal. To understand this better, see the Lease Guide for more details.

Al Hearn is owner and operator of LeaseGuide.com, a popular web site for automotive consumers interested in leasing. It has served thousands of visitors since 1995.

Related Articles:

Auto Detailing: Making Your Old Car New Again. - The wear and tear of seemingly ordinary, day to day driving can take its toll on even the most cautious of drivers. Nicks, scratches, dents, chips, and the like, can etch the surface of your car like an acid, marring the pristine finish it had when you drove it off the lot. These unwanted (and yet inevitable) scars are the proud automobile owner ...

How Your Cars Suspension Works - "Suspension," when discussing cars, refers to the use of front and rear springs to suspend a vehicle's "sprung" weight. The springs used on today's cars and trucks are constructed in a variety of types, shapes, sizes, rates, and capacities. Types include leaf springs, coil springs, air springs, and torsion bars. These are used in sets of four for e ...

Jeep Gladiator Concept Car 2005 - Why concept cars? For obvious reasons - to get a visible, tangible look at a design before production so its feel can be evaluated, possible problems can be foreseen, and, for concept cars shown to the public, so reactions of non-gear heads can be judged. In testing particular ideas concepts are best - for example, they could be a test bed for e ...

Consumer Tips: How To Buy A Used Car Privately - (NC)-Many people buy cars privately rather than through dealers. You can often save money going this route, however, keep in mind that if you have problems with the vehicle it may be difficult, if not impossible, to get any assistance or compensation from the vendor. Here are some more tips on how to get the best deal when buying a used car: It' ...

Have a Teen Driver? Learn How to Save Money on their Car Insurance. - Copyright 2005 Debt Management Credit Counseling Corp. Boca Raton, Fl -- Did you know when parents add their teens to their car insurance policies, premiums can jump from 100 percent to 355 percent even if the teen is driving the family minivan? There are several different ways to get lower premiums for your teenagers. Many insurance ...

Factors That Affect Your Car Insurance Premium - Many factors affect the premium you will pay for auto insurance. Each is a statistically based risk for a specific population. The higher the risk associated with a person, the more he or she is likely to pay for coverage. We have elaborated on some of the risk factors below, but there are numerous others, including driver's gender, miles driven pe ...

Internet Provides Wealth of Information on Car Maintenance - (ARA) - A thorough check of your vehicle's major systems is a good idea before the snow flies, and checking your tires, brakes and battery is a good start. But if you're like many drivers, you may not know enough to recognize a problem when you see one. For instance, do you know the telltale signs of a weakening battery? Do you know the differen ...

For a Complete list of Articles with summaries Click Here