I have three payments left on my 06 Liberty, I want to come out of the lease now. Will I just have to pay the 3 months payments, plus the $300 early lease termination fee or will I have other penalties?

Hi: I was under the impression that once we signed the lease, the monthly lease payment includes any taxes. This month I got a bill, which they charged me extra $300 for the property tax. Is it common? or I misled about it. Since actual owner is leasing company, I thought they are supposed to be responsible for the property taxes, Well being the first time lease holder learning along the way.

Repeated your post here to make it easier to follow my reply...

Take your rent charge... $4331 Divide by the term.. 48 months. Result: $90.23/month

Add your net cap cost and your residual amount. Just as an example.. $20K + $11K = $31,000

Divide $90.23 by $31,000 = .0029.. This is your money factor

Multiply .0029 X 2400 = approx. 6.96%.. This is the equivalent APR of your lease, assuming your CAP and residual are the same as above..

regards, kyfdx

What I want to understand in your example is what is the 6.96% applied against? In other words, what value exactly are you being computed the equivilent of interest against? II would have thought you should owe interest on the part of the car you are buying, or the depreaciation and amortization (i.e. the adjusted cap cost MINUS the residual value).

But in your example, for instance, that would be 20K-11K = 9K, But if I use a compound interest calculator against 9K over 48 months the monthly interest payment should be less than $30/month of the total payment, far less than the $90.23. So the "interest" must be calculated against something far larger than the amount being the equivilent of "borrowed" or used. The interest is larger even than if applied to the residual amount, but smaller than if applied to the entire value of the new vehicle.

The amount that is financed is an average of those two numbers.. You start out borrowing $20K (the cap cost), and end up owing the residual amount (which is satisfied by giving the car back).

You owe interest on the whole car.. because, after all, you can't borrow just the part you use... you have to borrow the whole car... then, give back the part you didn't use.. Since you pay for the car as you use it, that amount gradually drops to the residual over the life of the lease.

So, technically, it is ($20K + $11K) divided by two.. But, the division calculation is accounted for in the money factor..

I'm looking for the MF & RV for a 2010 Jeep Liberty 4x2 Limited, 36mo lease, 10,000 mi/year. I'm looking to buy within the next few days so your timely reply is SO greatly appreciated!

Hey Car_Man, I had similar question to previous post. I'd like to get the Chrysler Financial MF & RV for a 2010 Jeep Liberty 4x4, 36mo, 10K miles/yr. Thanks!

Hey jkelly555. Here you go. GMAC's current base lease rate and residual value for a 36 month lease of a 2010 Jeep Liberty Limited 4WD with 10,000 miles per year are 3.54% and an ugly 40%, respectively.

As you can see, GMAC publishes lease rates instead of money factors for Jeep vehicles. You can convert its published lease rates into approximate money factor equivalents by dividing them by 2400. So, a lease rate of 3.54% is equivalent to a money factor of around .00148.

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1Thank you

38,515Car_manvHost

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3144Take your rent charge... $4331

Divide by the term.. 48 months.

Result: $90.23/month

Add your net cap cost and your residual amount. Just as an example.. $20K + $11K = $31,000

Divide $90.23 by $31,000 = .0029.. This is your money factor

Multiply .0029 X 2400 = approx. 6.96%.. This is the equivalent APR of your lease, assuming your CAP and residual are the same as above..

regards,

kyfdx

What I want to understand in your example is what is the 6.96% applied against? In other words, what value exactly are you being computed the equivilent of interest against? II would have thought you should owe interest on the part of the car you are buying, or the depreaciation and amortization (i.e. the adjusted cap cost MINUS the residual value).

But in your example, for instance, that would be 20K-11K = 9K, But if I use a compound interest calculator against 9K over 48 months the monthly interest payment should be less than $30/month of the total payment, far less than the $90.23. So the "interest" must be calculated against something far larger than the amount being the equivilent of "borrowed" or used. The interest is larger even than if applied to the residual amount, but smaller than if applied to the entire value of the new vehicle.

Your help is appreciated.

57,405+$11KThe amount that is financed is an

averageof those two numbers.. You start out borrowing $20K (the cap cost), and end up owing the residual amount (which is satisfied by giving the car back).You owe interest on the whole car.. because, after all, you can't borrow just the part you use... you have to borrow the whole car... then, give back the part you didn't use.. Since you pay for the car as you use it, that amount gradually drops to the residual over the life of the lease.

So, technically, it is ($20K + $11K) divided by two.. But, the division calculation is accounted for in the money factor..

Hope that helps,

kyfdx

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138,515As you can see, GMAC publishes lease rates instead of money factors for Jeep vehicles. You can convert its published lease rates into approximate money factor equivalents by dividing them by 2400. So, a lease rate of 3.54% is equivalent to a money factor of around .00148.

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