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Crunching Numbers
Calculating Lease Payments
Calculating the monthly payment on a lease is not rocket science especially once
you've been shown how to do it. Yet, the ability to calculate the payment yourself is the
single most import tool you have to fight leasing fraud. This page explains how to do it
with example calculations.
Ford Leases
Ford lease payments are calculated a little differently than all the other
leasing companies. Unfortunately for Ford customers, this method ends up costing more due
to a built-in, undisclosed fee.
GMAC Leases
GMAC lease payments tend to come out slightly higher than a payment calculated
using the constant yield method with the same interest rate. Our sources indicate that
GMAC is "discounting" the residual before calculating the payment. We will post
more information on this method in the near future.
Sales Tax on Leases
Most states simply tax the monthly payment stream and any cap reduction payments
paid in cash. There are a few exceptions such as New York, New Jersey, and Illinois.
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