Question

Marisa leases a car that has a purchase price of $63,500 with an MSRP of $66,950 and decides to lease the car for 36 months. Find the monthly lease payment (in dollars) if the annual interest rate is 4.5%, the trade-in of her car was $25,000, she makes a $3,000 down payment, the residual value is 45% of the MSRP. Include a sales tax of 6.25%. (Round your answer to the nearest cent.)

Answer 1

The monthly lease payment for Marisa's car is $395.34.

How to find the monthly lease payment?

The MSRP of the car is $66,950, and the residual value is 45% of the MSRP, which is:

45% * 66950 = $30,127.50.

The adjusted capitalized cost is the purchase price minus the trade-in and down payment, which is:

$63,500 - $25,000 - $3,000 = $35,500.

The depreciation fee is the difference between the adjusted capitalized cost and the residual value, divided by the lease term, which is:

$35,500 - $30,127.50/ 36 = $149.24

The monthly rent charge is the sum of the adjusted capitalized cost and the residual value, multiplied by the money factor, which is:

(35,500 + 30,127.50) * 0.00375 = $246.10

The total monthly payment before tax is the sum of the depreciation fee and the rent charge, which is:

$149.24 + $246.10 = $395.34

Adding the sales tax of 6.25%, the monthly lease payment is $395.34. Therefore, the monthly lease payment for Marisa's car is $395.34.