How to compute a lease interes

Discussion in 'Credit Talk' started by Angela, Jan 16, 2001.

  1. Angela

    Angela Guest

    Today, we decided to go for a new mercedes. Buy or lease I don't know yet. Do any of you know how to compute what interest rate a "lease factor" corresponds to.

    My apologies GEORGE, I know I asked you this question on another thread.
     
  2. GEORGE

    GEORGE Well-Known Member

    RE: How to compute a lease int

    After three years you have no car with a lease. With a purchase you have the car. If you could know what the car would be worth after three years to sell it after purchase...YOU WOULD KNOW WHICH IS CHEEPER.
    I GUESS.
     
  3. Angela

    Angela Guest

    RE: How to compute a lease int

    The left over value on the mercedes lease is called the residual value. I found that out this morning. The salesman said something about dividing some numbers to get an equivalent of the interest rate. Thanks for the help. I may go to the bookstore on this one as this lease stuff is all greek to me.
     
  4. MarkT

    MarkT Guest

    RE: How to compute a lease int

    Multiply the money factor by 2400. That will give you the APR.
     
  5. Angela

    Angela Guest

    RE: How to compute a lease int

    Thanks MarkT for the mercedes lease info. We just found out that is the way to do it. I wonder how many people lease and don't know this.
     
  6. lisa

    lisa Guest

    RE: How to compute a lease int

    Do a search for leasing on the internet. There are a ton of websites that will give you a lot of information including all lease calculators that the dealer will use.
     

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