Welcome to the University of Leasing

The more you learn, the more you earn.

– Warren Buffett

Research

So much to learn so much to gain

Use our calculator to accurately price your lease the way the dealers do.

Time to graduate, take what you learned and apply it to your purchase.

Simple short emails work best so stick to the script:
Hi , I would like to lease (Stock#) immediately. If you agree to my terms I can commit today.
Insert the math and hit send!

GLOSSARY
MASTER THESE TERMS AND MASTER THE LEASE

MSRP: Manufacturer’s suggested retail price, this is the value the lender will calculate the residual value against. This number is set by the Manufacturer and does not change.
SELLING PRICE: This is the value you agree to pay for the vehicle. This value can change and can be higher or lower than the Msrp. This is the value the capitalized cost will be calculated from.
DOWN PAYMENT: Any amount of money in excess of your fees and taxes applied toward a cap cost reduction.
TAXED INCENTIVES: Rebates and Incentives that can be taxed. Loyalty , Conquest etc..
TRADE EQUITY: Any positive equity from your trade vehicle after any lens are paid.
CREDITS: Non taxable discounts, trunk money , undisclosed incentives etc..
ACQUISITION FEE: Bank fee, differs by lender with a common range of $695-$1495
DEALER DOC FEE: Set by dealer, include any dealer fees in this section as they all amount to nothing of value. Examples are: Processing fee, Document fee, Prep fee, Dispo fee, Delivery fee, PDSI fee, Destination fee, Marketing fee, NO2 fee, ETCH, VEHICLE COATINGS etc…
STATE FEES: Registration and Titling paid to your state of residence
SALES TAX: Based on where you are registering your vehicle. These taxes can vary from traditional sales tax for vehicles so be sure to verify via your state dmv website.

MONTHS: Length of total lease term: 24, 36, 39, etc… each change impacts the residual value.
MILEAGE PER YEAR: Common amounts include 7.5k, 10k, 12k, 15k each change impacts the residual value.
RESIDUAL: Value set by the lender based on the Mileage and Months of the lease.
MONEY FACTOR: The interest paid. Set by the lender but can be marked up by the dealer. This is calculated differently than a traditional loan as the finance charge is built in and not amortized. You can convert to see an equivalent APR by multiplying the money factor by 2400.
SECURITY DEPOSITS: Each Security deposit is based on 1 months lease payment although most lenders round up to the nearest $50 increment. They can be required if the lender deems your credit necessitates collection of security deposits due to risk. They also may be applied in multiples to reduce the money factor (interest charged) and ultimately save yourself money. The value of each reduction and the participation varies by lender. Research can be done via links provided below.

MONTHLY PAYMENT: your monthly amount due to the lender.
DRIVE OFF: The amount of total money due to the dealer upon delivery.
ZERO DRIVE OFF: True zero drive off is when you Capitalize all taxes and fees and no money is due to the dealer at drive off. This is very different than $0 DOWN which is just referencing your down payment or capitalized cost reduction. Most lenders will require you pay at a minimum your first month payment at delivery and also any SECURITY DEPOSIT that you may pay.