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Your lease payment is based on how much the car is worth now vs. how much it would be worth at the end of the lease. You pay the difference through your payments, as well as a little extra for the dealership themselves.
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I guess you know about the contract. Usually for 2-3 years with a down payment and monthly installments. At the end of the contract you do not own the car... Turned back to the dealer If the mileage allowance has gone over--- must pay a penalty per mile...Estimate should be close to $400 a month..Get facts and figures straight from the dealers mouth...
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you can do the same this as the dealer using this formula:Residual value + Price x money factor = ASelling price - Res value / term= BA + B = Total monthly payment plus taxes on those payments.
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God Bless you...When you lease, basically this is how it works. The finance company determines what percentage of the MSRP the vehicle will be worth at the end of the lease. This is called your residual value. They then take the residual value and subtract it from the MSRP (or the amount you have negotiated to). This amount, minus any trade value, plus any negative equity, is the amount on which your payments are figured. There is a finance fee, but basically it goes like this.$35,000 MSRP X 52% =$18,200 residual value$35,000-$18,200=$16,800 -$3000 trade equity=$13,800$13,800/36 months =$383So your payment in this scenario should be close to $384-$400. Compare that to financing $35,000-$3000=$32,000 for 60 months at 7.5%=$641. So roughly half the payment for half the time commitment, all of the warranty and NO RISK of being tipped when you are ready to trade. Seems like a no brainer to me.As far as knowing that you are getting the abslute cheapest lease payment, NEGOTIATE the sale price of the vehicle BEFORE you talk payment.
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