Need guidance on leasing terms for Range Rover Velar

Answers

• Mr_Shiftright Member Posts: 64,481

  January 2018 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).

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• kyfdx Moderator Posts: 236,760

  January 2018

  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_Shiftright Member Posts: 64,481

  January 2018

  Oops. I calculated a money factor of .0044. So I was RIGHT!

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