How to determine if a 24 months or a 36 months lease is the better deal?

[NLU]

Hi, since the numbers sometimes vary a lot for a 2 or 3 year lease: How to determine which lease duration is the better deal?

Thanks for helping me with understanding this better so that I can make the right decision for my next lease.

[archiepochi]

Look on Edmunds for the residual value and money factor. If the residual and MF doesn’t change much between 24 and 36, 36 is probably a better deal.

[paranoidgarliclover]

I would also add that, if there are a lot of rebates and/or incentives, those rebates/incentives get distributed over a shorter period of time w/ 24 mos (and thus 24 mos might be a better deal, depending on the RV change btw 24 and 36 mos).

[BYGFEET]

Simple-If you ADD all the payments including DAS, Monthly and Broker Fee divide by term/months will give you THE BETTER DEAL numbers

[mllcb42]

When you create your target deal for both, based on the current lease programs as they apply to your personal situation, you will have the effective monthly payment for both situations.

[gohawks23]

Spend time learning the numbers here…

LH Calculator and how to use it

One of the more common posts we see here are from people trying to utilize the LH Calculator and struggling to get the correct numbers. More often than not, this is the result of user error, so let this be a guide on how to use the calculator and what values go where. With that said, a few starting notes. Read these 3 times before continuing: The calculator is not perfect, there are some limitations in how things are calculated. Do not expect to match an offer perfectly. There are often diffe…

[Kerob]

You need to define “better deal” are you just talking which is the “lower payment” - that’s pretty straightforward. 36 months might have more maintenance and maybe tires, etc. Which you need to figure out what car you are getting (heavy SUVs burn tires faster), how many miles, highway/city miles. ETC