Lease comparison is a technique by which multiple car lease deals are evaluated by examining each of the factors that determine monthly payment amounts and total lease costs.

The factors that are analyzed in a lease comparison are as follows:

Selling price - This is the negotiated price on which a lease is based. It is typically a discounted version of full sticker price and can be compared to other lease deals as a percentage of MSRP, or a percentage of dealer margin (difference between full sticker and invoice price).

Residual Value - Compare as a percentage of MSRP. The higher the percentage, the better.

Money Factor - Compare as a finance rate. The lower the money factor, the better.

The results of a lease comparison will be determined by the combined results of the individual comparisons of the above factors. For the same vehicle, same MSRP, and same lease term, the lowest monthly payment will indicate the best combination of these factors.

The recommended tool to compare leases is the Lease Evaluator in our Lease Kit.

For more information, see: The Lease Guide

Return to LeaseGuide.com Home Page

 Comments and questions should be directed to .
Copyright ©1999-2008 LeaseGuide.com. No reproduction permitted without permission.

Legal Notice   Privacy Policy