Posts Tagged ‘people who lease a car are paying for what’

What Are People Who Lease a Car Paying For?

Saturday, June 5th, 2010

Many people who are interested in leasing a car often wonder what exactly they would be paying for every month if they were to lease a car. When you lease a car, the bulk of your monthly payment comes from the difference between the car’s selling price and its residual value. This is known as the vehicle’s depreciation. The other two smaller components of your lease payment include the finance charge and sales tax.

To sum up, you are paying for 3 things that make up your payment every month:

  1. Depreciation Fee
  2. Finance Fee
  3. Sales Tax

You can learn more about monthly car lease payments or calculating car lease payments by visiting the links found under “Car Lease Guide.”