Adapt Payment Lease For Free

Money factor: The money factor is similar to an interest rate. You can usually negotiate with the dealer to get a lower money factor, which helps you pay less interest over time.

Car leases often have lower monthly payments than auto loans, and you get to drive a new car every few years. Plus, you might even be able to negotiate your lease to get cheaper payments, higher mileage limits, or a lower buyout price.

Fundamentals of Lease Payments Residual Value = (MSRP) x (Residual Percentage) Monthly Depreciation = (Adjusted Capitalized Cost - Residual Value) / Term. Monthly Rent Charge = (Adjusted Capitalized Cost + Residual Value) x (Money Factor) Monthly Tax = (Monthly Depreciation + Monthly Rent Charge) x (Tax Rate)

Negotiate the interest rate (money factor) on the lease to a level appropriate to current market interest rates. During the negotiation process, be sure the calculations are always using one lease term?36 months, for example?so that you are comparing apples to apples.

Dealers may not be upfront about disclosing the money factor, nor are they required to be. ?Most dealers won't tell you until you ask?and most customers aren't aware that they should?but it's crucial information since it plays a major role in calculating your monthly payments,? Francies said.

Ing to Leaseguide.com, a lease deal with a money factor of less than . 0017 is a good deal ? this equals 4.08%.

The only way to refinance a lease is to buy the leased vehicle outright, either early on in the lease or when the lease period ends, and use an auto loan to fund the purchase. That may help you get a lower interest rate or a lower monthly payment.