Question 1

What is a money factor in car leasing?

Accepted Answer

A money factor is the interest rate used in leasing, expressed as a decimal. To convert to APR, multiply by 2400. For example, a money factor of 0.0025 equals 6% APR.

Question 2

How is residual value determined?

Accepted Answer

Residual value is the car's expected worth at lease end, set by the manufacturer based on historical data. It's expressed as a percentage of MSRP and varies by lease term and mileage.

Question 3

What fees are included in a lease?

Accepted Answer

Common lease fees include acquisition fee ($400-800), disposition fee ($300-500), and documentation fees. Some fees are negotiable, while others are set by the manufacturer.

Question 4

Can I negotiate a lease payment?

Accepted Answer

Yes, you can negotiate the capitalized cost (selling price), money factor, and residual value. Focus on the total cost rather than just the monthly payment.

Question 5

What happens if I exceed the mileage limit?

Accepted Answer

You'll pay excess mileage charges, typically $0.15-0.25 per mile. Consider your driving habits and negotiate a higher mileage limit if needed.

Question 6

Should I put money down on a lease?

Accepted Answer

Generally no - putting money down on a lease doesn't reduce the total cost and you lose that money if the car is stolen or totaled early in the lease.

Lease Payment Calculator (2025)

Lease Summary

How to Use This Calculator

Frequently Asked Questions

Learn More About Auto Loans

Related Guides

Other Calculators