2-Year Lease Candidates

[anon98469396]

Here is the thread you want to see.

When Two year lease cheaper than three year lease

assume 3 year Residual is r3, 2 year Residual is r2, c = (selling price - incentives + acquisition fee)/ MSRP. Roughly when c < r3 + 3 * (r2 - r3), 2 year lease will be cheaper. example, r3 = 0.6, r2 = 0.66, rebate =0, then c < 0.6 + 3* 0.06 = 0.78, selling price < 0.78 * MSRP - acq. MF will change it a little bit. Formula didn’t count acquisition fee waiver.