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A 36-month, 50% residual on a new $30,000 car means that its estimated depreciated value at the end of a 3 year lease will be $15,000. The actual value at the end of 36 months might be higher or lower. (Our Lease Kit contains estimated residuals for all current auto makes and models).

With a lease, you are essentially renting the car for a fixed amount of time (typically 36 to 48 months). Therefore, you pay only for the use (depreciation) of the car for that period instead of absorbing the full depreciation cost of the vehicle.

When you lease a vehicle, your monthly payment will be calculated based on the vehicle's depreciationthe change between its current value and its value at the end of the leaseplus interest and fees.The "money factor" or rent charge, which is similar to an interest rate on an auto loan.

Quickly Figure Out if Your Lease Deal is GoodAny lease that costs less than $125/month per $10,000 worth of vehicle is considered a good lease deal.IF ("Real" Monthly Payment / MSRP ) 10,000 is less than $125, then it's a good lease deal.The very best lease deals I've seen hover around the $100 per $10k mark.

As a lease is basically paying for the depreciation of a vehicle, I assumed that the interest rate quoted is applied to the purchase price minus the end value.Money Factor = Interest rate on the lease payment divided by 2400.

The business use of your car owned or leased is a deductible business expense. Whether a personal or business lease, you get a deduction for hauling supplies from your office to a client or taking a road trip to check out a new retail space.

How is the lease payment calculated?Start with the sticker price (MSRP) of the car.Take the MSRP and multiply it by the residual percentage.This equals the residual value.Then take the negotiated selling price of the car.Add in the fees to get the gross capitalized cost.Subtract your down payment and rebates.More items...