Help with GTS lease
03-14-2015, 10:01 PM
#16
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Join Date: Nov 2014
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Calculating lease payments is easy. The only information you need are:
1. Capitalized cost aka the agreed upon price
2. Incentives = any incentives that would reduce cap cost (cash back, rebates ect)
3. Money factor aka your rate. If you don't know your rate than that is a problem...... It's basically like having a mortgage and not knowing your interest rate. So please need to ask what is your rate then calculate to make sure you are getting that rate.
4. Residual = noted on the contract
5. Term = how months is the lease
6. Sales Tax = depends what county you live in will determine tax rate i.e., 7.75%, 8%, 8.25%. Always good to calculate base lease payment without tax and lease payment with tax.
As you can see 5 of the 6 information above is automatically disclosed on a lease contract with the exception of money factor which you can ask your retailer.
These 5 questions above are basic questions anyone leasing should be asking otherwise you are going into a lease blind not knowing if you are getting the base rate or a marked up rate.
If any of you need help calculating lease payments just let me know I would be more than happy to calculate for you as long as you have the above information.
1. Capitalized cost aka the agreed upon price
2. Incentives = any incentives that would reduce cap cost (cash back, rebates ect)
3. Money factor aka your rate. If you don't know your rate than that is a problem...... It's basically like having a mortgage and not knowing your interest rate. So please need to ask what is your rate then calculate to make sure you are getting that rate.
4. Residual = noted on the contract
5. Term = how months is the lease
6. Sales Tax = depends what county you live in will determine tax rate i.e., 7.75%, 8%, 8.25%. Always good to calculate base lease payment without tax and lease payment with tax.
As you can see 5 of the 6 information above is automatically disclosed on a lease contract with the exception of money factor which you can ask your retailer.
These 5 questions above are basic questions anyone leasing should be asking otherwise you are going into a lease blind not knowing if you are getting the base rate or a marked up rate.
If any of you need help calculating lease payments just let me know I would be more than happy to calculate for you as long as you have the above information.
