Lease Add Value Choice For Free

A decent money factor for a lessee with great credit is typically around 3% to 5%. If you have fantastic credit and you're offered a lease with a money factor higher than . 0025 (or 6% APR) then it may be worth your time to shop around.

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 term36 months, for exampleso that you are comparing apples to apples.

Although you aren't buying a new car, you can negotiate the price of the car just the same. The lower you negotiate the price, the less depreciation you may have to pay for over the life of the lease if all other terms remain the same. That may mean a lower monthly lease payment, too.

In broad terms, you calculate a lease by determining and adding the depreciation fee, plus a monthly sales tax and a financing fee. If you're looking to calculate your payment manually, here is the formula: Start with the sticker price (MSRP) of the car. Take the MSRP and multiply it by the residual percentage.

Your lease contract gives you the option to buy the car at the residual value. If the car is worth more than the residual value, you can sell the car and keep the difference.The cost to you will be less than buying a similar used car from a dealer.

Despite new restrictions on selling to a third-party dealer, you do have options for accessing leased car equity....3 Ways to Tap the Unexpected Equity in Your Leased CarSell to a third-party dealer.Sell to a participating dealer.Buy your car to sell or keep.Nov 4, 2021

A lease deal with a money factor of less than . 0017 is a good deal. Anything higher, means less of a good deal. Of course, the best lease deals are made with a combination of low lease PRICE, high RESIDUAL value, and low MONEY FACTOR.