AUTO LEASE numberCruncher ©

   Car Lease Info

". . . Remember: the lowest 'money factor' with highest 'residual' results in the lowest monthly payment."

What is the Auto Lease numberCruncher?

If you have never leased a car before, the process can range between a bit confusing and rocket science. Generally, if your decision on a new car is based on a monthly payment, leasing can be very attractive because the payments are generally lower than when buying.

This is true because the monthly payments are based on you giving the car back after an agreed upon period of time. Since you only use the car for part of its life, you only pay for the portion of time you use it.

Sounds simple right? Well it could be, but how do you know that you are getting the best deal possible. After all, you are relying on information that the salesman provides to you. This is where the Auto Lease numberCruncher comes in handy. The calculator allows you to input the terms of the deal and see the monthly payment for yourself, without having to rely only on what someone else tells you.

Two critical components of a car lease are the "money factor" and the "residual." The "money factor" is essentially the interest rate and the "residual" is the value of the car at the end of the lease. The dealership frequently works with several banks or other financial organizations and the "money factor" and "residual" can vary. Remember: the lowest "money factor" with highest "residual" results in the lowest monthly payment.

It's pretty simple really. Using the calculator allows you to evaluate different combinations of money factor, residual, down payment, and trade-in scenarios. Or, maybe you're not sure whether to apply a rebate to the deal or take it in cash. Input the scenarios into the calculator and see how your monthly payment is affected. You won't need to rely on the salesman sliding a paper in front of you showing a proposed monthly payment, computed by the dealership. Instead calculate it yourself.

A word about the "money factor" and "residual."

At many dealerships the money factor and residuals are set in stone and cannot be negotiated (for a given car and lease term). However, some dealships use various banks and other financing organizations for their leases and the leasing terms between them may vary. Although, there may not be a large variance in the offered money factor and residual between organizations for the same car and lease term, it's important to shop as diligently as you can to ensure you have considered all available financial options.

It's quite possible to find the same exact car at different dealerships selling at a different price. Naturally, all things being equal, you would probably want to choose the lowest priced car to lease. However, because of the "money factor" and "residual" associated with the lease, the least expensive car may cost you more per month! This is because the money factor and/or residual for the deal may be different between different dealerships/financial organizations. Unless you can calculate the lease payment on your own, you probably would never know this.

Find the car you want, negotiate the absolute best price for the car, and then use the Auto Lease numberCruncher to evaluate the deal.

While using the numberCruncher, be certain to "mouseover" the different terms and note the definitions. Do the research, negotiate hard, and calculate the monthly payment for yourself.

**The numberCruncher is absolutely free to use. However, if you find it useful and want to show your appreciation, think about making a donation to your favorite charity. Please consider the Wounded Warriors Project.us_flag


Some Leasing Points to Ponder

  1. The dealer gets paid for the car whether you lease or buy.
  2. Negotiate the lowest price for the car just like you are buying.
  3. If possible negotiate/shop for the best "Money Factor" and "Residual."
  4. Don't shop for a "payment" amount.
  5. If you add dealer installed options (like an upgraded sound system, etc.) you will pay the full price of the item over the term of the lease
  6. Run the Auto Lease numberCruncher to verify the monthly payment.