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:
- Depreciation Fee
- Finance Fee
- Sales Tax