what is depreciation and amortization amounts and rent charges about i thought i was already working against residual values ?
The best thing you can do is take a step back and read several articles on how to calculate a lease. Once you see all the inputs and how the output or lease cost is determined it should make more sense. Here’s an article that should help:
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Read the leasing101
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Depreciation is a residual figure that tells you how much the car depreciates over lease term.
Amortization is total lease costs spread across the # of months in your lease term.
Rent charge is the amount you’re paying in interest (APR) to finance the lease.
The residual (vehicle MSRP less depreciation) and the rent charge will impact the cost of your lease. Amortization is just your payment amounts based on the payment schedule.
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