Calculate Your Own Car Lease Payments
Can you calculate your own car lease payments?
Certainly.
Using an online calculator is the easiest way.
But you can also use a business calculator, such as those made by HP. However, you can't use the build-in annuity-based functions because that is not what car dealers and lease companies use. They use a much simpler formula that approximates the results of the business formula. The results, however, are only different by a couple of dollars. All lease companies and banks routinely use the simpler formula.
Therefore, if you want to use the simple version of the lease payment formula on your HP business calculator, you'll have to enter the function manually and save it for future use.
I won't explain the simple payment formula here but you can find a full detailed explanation on my LeaseGuide web site at www.leaseguide.com/lease08.htm. It's also easy enough to use this formula with a simple drugstore-variety calculator.
Certainly.
Using an online calculator is the easiest way.
But you can also use a business calculator, such as those made by HP. However, you can't use the build-in annuity-based functions because that is not what car dealers and lease companies use. They use a much simpler formula that approximates the results of the business formula. The results, however, are only different by a couple of dollars. All lease companies and banks routinely use the simpler formula.
Therefore, if you want to use the simple version of the lease payment formula on your HP business calculator, you'll have to enter the function manually and save it for future use.
I won't explain the simple payment formula here but you can find a full detailed explanation on my LeaseGuide web site at www.leaseguide.com/lease08.htm. It's also easy enough to use this formula with a simple drugstore-variety calculator.
posted by Al Hearn at 5:57 PM
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