If you’re interested in setting up a car lease agreement with a leasing company, one of the first things you’ll need to figure out are your monthly car lease payments. Car leases can be an important finance charge and an expensive acquisition for any family, and it’s a good idea to determine beforehand exactly how much money you can afford to spend on your car lease terms and payment each month. Read on for a step-by-step guide on how to use a car lease calculator online to help determine your monthly car lease payments to your car leasing company.
Step 1 — Log on to a Car Lease Payment Calculator
LeaseGuide is one of the most popular online car lease payment calculators available today. However, there are several other calculators as well. Simply go to a search engine and look up ‘car lease payment calculators’ for a list of links to various websites.
Step 2 — Determine the MSRP and Input the Value
First, you’ll need to determine the MSRP value for your vehicle. The MSRP is the manufacturer’s suggested retail price of the car, and this value can be found either on the sticker that comes on the inside of the car at the dealer lot or online. Determine this value and put the number into the online lease payment calculator.
Step 3 — Determine the Base Cap Cost and the Costs Added to the Lease
Next, determine the base cap cost of the car. This value is the amount of money you’ve agreed upon as the value of the vehicle, and the price you’ll pay to the dealer or the leasing company. At this time, you should also consider any additional costs that have been added to the total costs of the lease. These often include insurance costs. Input both of these values into the calculator.
Step 4 — Determine Reductions
Next, consider any items that may help to reduce the price of your lease. These potentially include credit you’ve received for trading in a car, down payments you’ve made, and more. Put these values into the calculator next.
Step 5 — Determine the Depreciation Charge and the Finance Charge
The depreciation charge of your vehicle is the amount of money your vehicle has decreased in value if it is used. The finance charge is established by the leasing company, so you’ll need to contact them in order to get the correct value to put in to your calculator. Once you have these values, enter them into the correct parts of your online car lease payment calculator.
The online calculator will use the information you’ve put in to determine the average monthly payment you’ll need to pay. If you have any issues with this value, consult with the car lease payment company representative who is assisting you with your individual case.