Expertise in Every Loan

Total Monthly Payment

N/A

Depreciation Fee

N/A

Lease Fee

N/A

Pre-Tax Monthly Payment

N/A

Monthly Usage Tax

N/A

Glossary of Terms

Total Monthly Payment

The total amount you pay each month for the lease, including depreciation, lease fee, and taxes.
Calculation: Add the depreciation fee, lease fee, and monthly usage tax to get the total monthly payment.

Depreciation Fee

The portion of the monthly payment that covers the loss in value of the car over the lease term.
Calculation:
Subtract the car value at the end of the loan from the price of the vehicle to find the total depreciation.
Divide this amount by the length of the lease (in months) to get the monthly depreciation fee.

Lease Fee

The cost associated with leasing the car, often including interest and other charges.
Calculation:
Calculate the average of the vehicle price and the car value at the end of the loan.
Multiply this average by the new car lending rate (expressed as a monthly rate) to determine the monthly lease fee.

Pre-tax Monthly Payment

The monthly payment amount before sales tax is added.
Calculation: Add the depreciation fee and lease fee to get the pre-tax monthly payment.

Monthly Usage Tax

The sales tax applied to the monthly lease payment.
Calculation: Multiply the pre-tax monthly payment by the usage tax rate to find the monthly usage tax.

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