Auto Lease Calculator Edmunds

Edmunds-Style Auto Lease Calculator

function calculateLease() { var msrp = parseFloat(document.getElementById('msrp').value); var sellingPrice = parseFloat(document.getElementById('sellingPrice').value); var residualPercentage = parseFloat(document.getElementById('residualPercentage').value); var leaseTerm = parseFloat(document.getElementById('leaseTerm').value); var moneyFactor = parseFloat(document.getElementById('moneyFactor').value); var capCostReduction = parseFloat(document.getElementById('capCostReduction').value); var tradeInValue = parseFloat(document.getElementById('tradeInValue').value); var salesTaxRate = parseFloat(document.getElementById('salesTaxRate').value); var acquisitionFee = parseFloat(document.getElementById('acquisitionFee').value); // Validate inputs if (isNaN(msrp) || msrp <= 0 || isNaN(sellingPrice) || sellingPrice <= 0 || isNaN(residualPercentage) || residualPercentage 100 || isNaN(leaseTerm) || leaseTerm <= 0 || isNaN(moneyFactor) || moneyFactor < 0 || isNaN(capCostReduction) || capCostReduction < 0 || isNaN(tradeInValue) || tradeInValue < 0 || isNaN(salesTaxRate) || salesTaxRate < 0 || isNaN(acquisitionFee) || acquisitionFee msrp) { // This is a common scenario where selling price is negotiated below MSRP. // If sellingPrice is higher than MSRP, it's unusual but not an error for the calculation itself. // For this calculator, we'll proceed, but a real-world scenario might flag this. } // 1. Calculate Adjusted Capitalized Cost // This is the amount the lease is based on after reductions. var adjustedCapCost = sellingPrice – capCostReduction – tradeInValue; // 2. Calculate Residual Value Amount // Residual is typically based on MSRP, not selling price. var residualValueAmount = msrp * (residualPercentage / 100); // Ensure adjustedCapCost is not less than residualValueAmount for a valid lease structure if (adjustedCapCost < residualValueAmount) { // This can happen if there's a very large down payment or trade-in. // While mathematically possible, it's unusual for the depreciation portion to be negative. // For simplicity, we'll allow it, but a real lease might adjust terms. } // 3. Calculate Depreciation Portion of Monthly Payment var depreciationPortion = (adjustedCapCost – residualValueAmount) / leaseTerm; // 4. Calculate Finance Charge Portion of Monthly Payment var financeChargePortion = (adjustedCapCost + residualValueAmount) * moneyFactor; // 5. Calculate Base Monthly Payment (before tax) var baseMonthlyPayment = depreciationPortion + financeChargePortion; // 6. Calculate Sales Tax on Monthly Payment var monthlySalesTax = baseMonthlyPayment * (salesTaxRate / 100); // 7. Calculate Total Monthly Payment var totalMonthlyPayment = baseMonthlyPayment + monthlySalesTax; // 8. Calculate Total Upfront Costs (due at signing) // This typically includes capitalized cost reduction, acquisition fee, and the first month's payment. var totalUpfrontCosts = capCostReduction + acquisitionFee + totalMonthlyPayment; // 9. Calculate Total Lease Cost // Total monthly payments + total upfront costs (excluding the first month's payment if already counted in upfront) var totalLeaseCost = (totalMonthlyPayment * leaseTerm) + acquisitionFee + capCostReduction; // This sums all payments + upfront fees // Display results var resultHtml = '

Lease Calculation Results:

'; resultHtml += 'Estimated Monthly Payment: $' + totalMonthlyPayment.toFixed(2) + "; resultHtml += 'Total Upfront Costs (Due at Signing): $' + totalUpfrontCosts.toFixed(2) + "; resultHtml += 'Total Lease Cost: $' + totalLeaseCost.toFixed(2) + "; resultHtml += '(Includes all monthly payments, capitalized cost reduction, and acquisition fee)'; document.getElementById('leaseResult').innerHTML = resultHtml; } .calculator-container { font-family: 'Arial', sans-serif; background-color: #f9f9f9; padding: 25px; border-radius: 8px; box-shadow: 0 2px 10px rgba(0, 0, 0, 0.1); max-width: 600px; margin: 20px auto; border: 1px solid #ddd; } .calculator-container h2 { text-align: center; color: #333; margin-bottom: 20px; font-size: 24px; } .calculator-content { display: flex; flex-direction: column; gap: 15px; } .input-group { display: flex; flex-direction: column; } .input-group label { margin-bottom: 5px; color: #555; font-size: 15px; } .input-group input[type="number"] { padding: 10px; border: 1px solid #ccc; border-radius: 4px; font-size: 16px; width: 100%; box-sizing: border-box; } .calculator-container button { background-color: #007bff; color: white; padding: 12px 20px; border: none; border-radius: 4px; cursor: pointer; font-size: 18px; margin-top: 15px; transition: background-color 0.3s ease; } .calculator-container button:hover { background-color: #0056b3; } .calculator-result { margin-top: 25px; padding: 15px; background-color: #e9f7ef; border: 1px solid #d4edda; border-radius: 5px; color: #155724; font-size: 16px; } .calculator-result h3 { color: #155724; margin-top: 0; margin-bottom: 10px; font-size: 20px; } .calculator-result p { margin-bottom: 8px; line-height: 1.5; } .calculator-result p strong { color: #000; } .calculator-result .error { color: #dc3545; background-color: #f8d7da; border-color: #f5c6cb; padding: 10px; border-radius: 4px; } .small-text { font-size: 0.9em; color: #666; }

Understanding Your Auto Lease: An Edmunds-Style Guide

Leasing a car can be a flexible and often more affordable way to drive a new vehicle every few years compared to purchasing. However, the terms and calculations involved can seem complex. This guide, inspired by the detailed explanations found on sites like Edmunds, aims to demystify auto leasing and help you understand the key factors that determine your monthly payment.

What is an Auto Lease?

When you lease a car, you're essentially paying for the depreciation of the vehicle over a set period, plus a finance charge (similar to interest) and taxes. You don't own the car; you're renting it for a fixed term, usually 24, 36, or 48 months, with an agreed-upon mileage limit.

Key Lease Terms Explained:

• Vehicle MSRP (Manufacturer's Suggested Retail Price): This is the sticker price of the car as set by the manufacturer. It's often the basis for calculating the residual value.
• Negotiated Selling Price (Capitalized Cost): This is the price you and the dealer agree upon for the vehicle. It's the starting point for your lease calculation, similar to the purchase price if you were buying. A lower negotiated selling price directly reduces your monthly payments.
• Residual Value (% of MSRP): This is the estimated value of the car at the end of your lease term, expressed as a percentage of the MSRP. A higher residual value means the car is expected to depreciate less, resulting in lower monthly payments for you.
• Lease Term (Months): The duration of your lease agreement, typically ranging from 24 to 48 months.
• Money Factor: This is the lease equivalent of an interest rate. It's usually a very small decimal (e.g., 0.00150). To convert it to an approximate Annual Percentage Rate (APR), multiply it by 2400 (0.00150 * 2400 = 3.6% APR). A lower money factor means lower finance charges.
• Capitalized Cost Reduction (Cash Down): Any upfront cash payment you make at the beginning of the lease. This reduces the amount being financed, thereby lowering your monthly payments.
• Trade-in Value: If you trade in an existing vehicle, its value can be applied as a capitalized cost reduction, similar to a cash down payment.
• Sales Tax Rate (%): The sales tax applied to your lease. In most states, sales tax is calculated on your monthly payment, not the full vehicle price.
• Acquisition Fee: An administrative fee charged by the leasing company for setting up the lease. This is typically paid upfront or rolled into your monthly payments.

How Our Calculator Works:

Our Edmunds-style calculator breaks down your lease payment into two main components:

1. Depreciation Portion: This covers the difference between the adjusted capitalized cost (negotiated selling price minus any capitalized cost reductions like cash down or trade-in) and the residual value, spread out over your lease term.
2. Finance Charge Portion: This is calculated based on the sum of the adjusted capitalized cost and the residual value, multiplied by the money factor. It's essentially the cost of borrowing the money for the lease.

These two portions combine to form your base monthly payment, to which sales tax is then added. The calculator also estimates your total upfront costs (due at signing) and the total cost of the lease over its entire term.

Tips for a Better Lease Deal:

• Negotiate the Selling Price: Just like buying, the negotiated selling price (capitalized cost) is crucial. A lower selling price means less depreciation to pay for.
• Know the Residual Value: While often non-negotiable, understanding the residual value helps you compare deals. A higher residual value is generally better for leasing.
• Shop for the Money Factor: Money factors can vary between lenders and even dealers. Ask for the money factor and compare it to ensure you're getting a competitive rate.
• Consider Lease Incentives: Manufacturers often offer special lease deals with reduced money factors or higher residual values.
• Mind Your Mileage: Be realistic about your driving habits. Exceeding your mileage allowance can result in significant overage fees at lease end.

By understanding these components and using our calculator, you can approach your next auto lease with confidence, ensuring you get a deal that fits your budget and driving needs.