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Is this lease deal ok? I'm confused about the "rent charge"

kurlisiakurlisia Member Posts: 3
edited February 13 in Toyota
I signed a lease deal today for a 2024 4runner. The lease deal is the following:

Gross capitalized cost ; $49517.02
Capitalized cost reduction: $537.9
Adjusted capitalized cost: $48979.12
Residual value: $34248.00
Depreciation and any amortized amounts: $14731.12
Rent charge: $5303.16
Total base of monthly payments: $20034.28
Lease payments: 36
Base monthly payment: $556.51
Monthly sales / use tax: $50.36
Total monthly payment: $606.87

They told me that the money factor is .00177. I wasn't aware that there is a "Rent Charge." Is this a standard practice? How is the rent charge calculated?

Thank you for your help

Comments

  • MichaellMichaell Moderator Posts: 241,144
    kurlisia said:

    I signed a lease deal today for a 2024 4runner. The lease deal is the following:

    Gross capitalized cost ; $49517.02
    Capitalized cost reduction: $537.9
    Adjusted capitalized cost: $48979.12
    Residual value: $34248.00
    Depreciation and any amortized amounts: $14731.12
    Rent charge: $5303.16
    Total base of monthly payments: $20034.28
    Lease payments: 36
    Base monthly payment: $556.51
    Monthly sales / use tax: $50.36
    Total monthly payment: $606.87

    They told me that the money factor is .00177. I wasn't aware that there is a "Rent Charge." Is this a standard practice? How is the rent charge calculated?

    Thank you for your help

    The rent charge is a fancy name for the interest you pay on a lease. Every lease has it.

    The monthly rent charge is calculated as such:

    (cap cost + residual value) * money factor

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  • kurlisiakurlisia Member Posts: 3
    I appreciate your response. What am I doing wrong here - when I plug in the numbers, (48979+34248)*0.0425 = $3537, whereas the rent charge they are showing me is $5303? Thank you again
  • kyfdxkyfdx Moderator Posts: 236,942
    kurlisia said:

    I appreciate your response. What am I doing wrong here - when I plug in the numbers, (48979+34248)*0.0425 = $3537, whereas the rent charge they are showing me is $5303? Thank you again

    You stated above that the money factor was .00177. Where did the .0425 come from?

    ($48979 + $34248) X .00177 = $147.31

    $147.31 X 36 mo = $5303.16

    On the money!

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