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Old May 27, 2007 | 03:30 AM
  #1  
iyzmi's Avatar
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Default Lease Rates

Are monthly payments for a leased car only based on their price or price AND other stuff deferring between different brands. Like if I was looking at two different brand cars with the same lease conditions for he same price, would the rates be the exact same?
Old May 28, 2007 | 12:38 PM
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By lease rates, do you mean the interest?

In a nutshell it works like this:

Car costs 20k. In 3 years, car is worth 11k. Car is then financed then financed on 9k (the difference between current price and future worth, aka "residual") for 3 years at x apr.

Where things get different is when manufacturers spice up the value quotient by offering cheap apr on leases, adding a fixed whole number to the future worth (residual inhancement), and/or changing the % depreciation that the residual is based off of.
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