before calculating the total lease payment calculation. you must want to find the three things to determine your lease payments.
1, find your depreciation.
2, find your finance lease payment.
3, find your sales tax.
if you add these three things. that’s where you will find the; total lease payment. so let’s take a look, step by step; how you can do the lease payment calculation.
1, calculate the depreciation in; lease payments.
let’s say you’re taking the car for 5 5-year lease, which is worth of selling 46,000 dollars. if you want to take this car then you need to pay the down payment of 2000 dollars and other credit such as a factory rebate of 2000 dollars. and where the car has outstanding balance loan payments of 5000 dollars.
before calculating the depreciation fee. you need to subtract the down payment of 2000 dollars, and other credits of 2000 dollars by car worth. so 46,000-4000 = 42,000 is the net capitalized cost. which is the final cost of the car.
however, to calculate the depreciation fee, you need to determine, what is worth after the 5 years of your leased car.
let’s say, now the sticker price of your car is 50,000 dollars; and after 5 years, its residual value is 50%.
which means 25,000 dollars. so if you subtract the 42000$-25000$ of your residual value. then you will end up with 17,000 dollars . this is the total depreciation amount of your 5 years . so if you divide that 60 months. then you will pay a monthly 283.34 dollars depreciation cost.
2, find your finance lease payment calculation.
when you want to find the finance lease; monthly payments. you must want to, add current the car worth; of 42000 dollars. and after 5 years the car’s worth is; 25,000 dollars.
then you will get the answer of 67,000$. this is the amount; you want to finance . but when you want to finance for 60 months. then multiply the 67,000$ by 60 months.
then, you will get the answer of 4,020,000. but without your rent payment. how did you find the rent payment? the rent payments are always determined by the leaser. so let’s say the rent will be 13,860 dollars.
so when you want to find the finance lease amount; just divide the rent amount by 13,860 dollars; by 4,020,000 dollars. then you will get the answers of 0.0034 . this is the amount that helps to find the finance monthly payments. it is called as money factor .
you don’t need to know anything, to find the finance monthly lease payment calculation You know that your finance amount is 67,000 dollars. if you multiply this amount with a money factor of 0.0034 dollars.
then you will get the monthly finance amount of 231.0000004 dollars. if you are not good at math, then I recommend you use the calculator.
3,find your sales tax
furthermore, when you want to find the sales tax, just add the monthly. depreciation amount of 283.34 dollars. and monthly finance lease amount of 231.0000004 dollars to find your not sales tax amount. then you will get the answer of 514.3400004 dollars.
let’s find your sales tax. if you’re in the tax bracket of 23% . f you multiply the 23% by the 514.34 dollars then you can easily find you pay sales tax as 118.298200092 dollars.
conclusion
finally, when you want to find the lease payment calculation for your 50,000-dollar lease car. you have to add the three monthly payments of depreciation, finance lease payment, and sales tax.
depreciation 283.34 + monthly lease amount 231.0000004 × 23% = then you pay the total lease amount with tax is 514 dollars. if you have any more doubt about it , then don’t hesitate feel free to contact us