Hi thank you for your informative post. However I am getting a very large difference in my monthly payments when I calculate it manually vs when I use the calculator. Can you let me know if the formula I am using is correct? Or if I just have a misunderstanding on how to calculate leasing price.
Monthly Payment (excluding tax and interest) = [ (The Agreed Sell price of the car) - (MSRP * RV ) ] / Months of Car being lease. Then once you get the Monthly Payment multiply it by the (MF * 2400)/100 to calculate what monthly payment would be including interest.
This example is excluding down payment and Taxes.
Example is A car with MSRP 100,000, dealer agreed to lease at 90,000 ( 10% cap reduction), 36 months 10,000 miles/yr with MF 0.00200 and RV 60%. When I used the lease hacker calculator plugging those values I get a Pre-Tax Monthly Payment of 1,157.
However when I do it manually I get: 100,000 * .60 = 60,000 RV. 90,000-60,000 = 30,000 of deprecation 30,000/36 = 833.33 a month * (0.00200 * 2400)/100 = 39.99 of interest per month
Total Pre-Tax Monthly Payment is 833.33 + 39.99 = 873.32.
Am I doing something wrong? That is a huge difference from 1,157 to 873.32. Total of 10,212 dollars over 36 months. Sorry for the long post. If anyone can help I would greatly appreciate it. Thanks