Why It's Important to Know How to Calculate Your Lease Payment by Hand
There are so many ways to hide extra dealer profit into the monthly payment. Most consumers have absolutely no idea when they get ripped off on a lease.
For example, one common dealer practice is to charge consumers full MSRP for the vehicle. The price of the vehicle affects your monthly lease payments, but many car shoppers don't realize this.
A dealer can easily add an extra $40 to the lease payment and most car shoppers wouldn't even bat an eye because most of them don't know how to calculate a lease payment correctly. An extra $40 for 36 months adds up to nearly $1,500.
This is why it's very important for you to be able to calculate your lease payment by hand or by using a simple calculator. This will prevent dealers from hiding extra fees in the payment.
You'll even amaze the salesperson when they find out you can calculate a lease payment correctly - something that most of them don't know how to do.
To learn how to do it, read our guide on How to Calculate Your Monthly Lease Payment.
My Recommendation for Car ShoppersTrueCar No-Haggle and Ryde Shopper are the quickest way to see the lowest car prices in your area. These sites show you no-haggle prices from dealers closest to you - and the deals are usually really good. This should be the first step you take when negotiating your car price. Follow this up with my checklist to make sure you squeeze out every last bit of savings.
- Gregg Fidan
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About: Gregg Fidan
Gregg Fidan + is the founder of RealCarTips. After being ripped off on his first car purchase, he devoted several years to figuring out the best ways to avoid scams and negotiate the best car deals. He has written hundreds of articles on the subject of car buying and taught thousands of car shoppers how to get the best deals.