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Need guidance on leasing terms for Range Rover Velar

CapeCod02536CapeCod02536 cape codPosts: 1
edited January 2018 in Land Rover
interested in Range Rover velar

Leasing question:

newbie to leasing .....explain what this means?

33/12 - 56% and .00032
36/12 - 54% and .00044

I saw these type of figures on some postings but need more clarification. thanks!

Answers

  • Mr_ShiftrightMr_Shiftright Sonoma, CaliforniaPosts: 64,490
    edited January 2018
    The 36/12 are the terms of the lease -- 36 months/ 12,000 miles per year (or part thereof)

    The 56% is the residual value (what the car is predicted to be worth at the end of the lease. The higher the residual value, the lower your payments per month will be)

    .00044 is the "money factor", which is the same as the interest rate you will pay during your lease term. To figure out the "normal" interest rate, multiply by 2400. So your interest rate there is 10.56%. (EDIT: This calculation is wrong--see below for how to do this without fat fingers). :p
  • kyfdxkyfdx Posts: 128,328
    Agree with all but, this:
    .00044 is the "money factor", which is the same as the interest rate you will pay during your lease term. To figure out the "normal" interest rate, multiply by 2400. So your interest rate there is 10.56%.

    .00044 X 2400 = 1.056% APR

    Just needed to move the decimal point over one.

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  • Mr_ShiftrightMr_Shiftright Sonoma, CaliforniaPosts: 64,490
    Oops. I calculated a money factor of .0044. So I was RIGHT! :p
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