Calculating Your Car Lease Payment – You MUST Know How!

Most people who enter the car dealership beforehand know very little or nothing about the way in which a car lease payment is determined. They do not understand the different components that it consists of and this puts them at a severe disadvantage.

You see, the salesmen at the dealership have a greater ability to manipulate potential customers who know very little about how to calculate a car lease. They will exploit every opportunity they have to take advantage of a customer’s lack of car leasing knowledge.

So what happens once an unprepared customer enters the dealership and talks to a salesman is that he may find that his negotiation is ineffective. Why? Why would it be ineffective? It’s ineffective because he doesn’t understand what factors go into the monthly payment.

Put simply, if you don’t understand the different components of the car lease payment, you cannot successfully negotiate a good lease deal. Understanding how lease payments are calculated will naturally improve and change your negotiating skills so that your negotiation is more in tune with the specific details of a car lease payment.


Calculating your car lease payment using a car lease calculator or even by hand by following the directions of a lease guide is extremely advantageous. My recommendation is that you first learn how to calculate a car lease payment using the simple formulas and how to guides on the internet. You will learn the three different components of your payment which consist of the depreciation charge, the finance charge, and sales tax.

Your next step should be to use a car lease calculator in order to check the accuracy of your calculations. This calculator can also be used as a way to play with the different variables in a lease payment to see just how much you can change the total lease payment by adjusting certain factors such as the selling price, money factor, or cap reduction. You can use this knowledge to your advantage once you visit a dealership and talk to a salesman. You will have a much better idea of what is a reasonable and what isn’t a reasonable amount of money to pay per month.

An example will illustrate the importance of educating yourself: when you go to the dealership, you will completely understand the significance of negotiating the selling price as opposed to the payment. A lower selling price gives you a lower monthly payment. The selling price is arguably one of the most important components that can be significantly reduced with some negotiation on your end.

After learning how to calculate a lease payment and using an accurate car lease calculator, you will feel much more confident in your ability to negotiate a good deal once you visit a dealership. You will become more familiar with the lingo and terminology that car dealers use once they sit you down to talk about the actual numbers and prices. Your understanding of payments will make it so that salesmen take you more seriously because they will understand that you have educated yourself. is a personalized Car Lease Guide that will provide you with free tips and tricks for obtaining the best deal possible.

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