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Schedule Identification Lease: full-featured PDF editor

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To determine the lease term, first, start with the non-cancelable period of the lease. Then, add any renewal option periods for renewals the lessee is reasonably certain of exercising. Third, add any periods covered by a termination option if the lessee is reasonably certain it will NOT exercise that option.
Depreciation. Interest. Tax.
Identify the number of the monthly payments on the lease. Then subtract the residual value from the net capitalized cost. Divide the resulting number by the number of payments. The result is the depreciation portion of the lease payment. For example, you lease a new car for three years.
A $30,000 vehicle with a 65 percent residual would have a base monthly payment of $292 before taxes, interest and fees. Choosing the vehicle with the higher residual percentage would net a savings of more than $200 per month for a vehicle with the same selling price.
(You can convert an interest rate to a decimal by dividing it by 2,400: 3/2,400 = 0.00125. Conversely, you can convert a lease factor to an interest rate by multiplying it by 2,400.) The interest rate you get in a lease contract is based on your credit score. The rate you get is based on your credit score.
The One Percent Rule. The so-called one-percent method of sizing up a lease offer is based on the concept of dividing the monthly payment (not including sales tax, if any) by the MSRP sticker price of the car. If the result is very close to 1%, or less, the better the deal.
Generally, a good deal is when your monthly payment is equal to one percent of the retail price of the car, with only drive-off fees due upfront (first month's payment, document fees, and vehicle registration). On a 36-month lease, every $1,000 down is equivalent to adding approximately $30 to your monthly payment.
For example: Let's say your lease costs $5,000 for 24 months including taxes. If you make a $1,500 down payment, you're going to pay $3,500 over that 24-month lease term, which makes your monthly payment $145.84. If you make a $500 down payment, you're going to pay $4,500 over 24 months, or $187.50 per month.

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