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Car Lease Calculation Template

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Car Lease Calculation Template Powered By Docstoc
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This spreadsheet analyzes the lease/purchase decision. In the case of a purchase, it is assumed sales tax is paid on the negotiated price at the time of purchase, and property taxes are paid annually. In the case of a lease, it is assumed sales tax is paid on the difference between the list price and the payoff at the time of purchase, sales tax is paid on the payoff when the lease expires, and property taxes are paid by the lessor. This spreadsheet assumes the item is purchased at the payoff price at the time the lease expires. The lease has additional value to the lessee because of the option not to purchase. The features of your lease may be different than assumed here.

Assumptions List price Negotiated price Lease period (months) Payoff Interest rate (APR) Effective annual rate Sales tax rate Property tax (annual) Lease payment Results

$ 26,000 $ 24,000 36 $ 20,000 9.00% 9.38% 6% $ 300 $ 280

Purchase Present value of payments Present value of sales tax Present value of property tax Total $ 24,000 $ 1,440 $ 754 $ 26,194

Lease $ 24,154 $ 1,277 $ 25,431

The following table provides a check on the lease calculations above. Sales Tax 360 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ PV Factor 100.0% 99.3% 98.5% 97.8% 97.1% 96.3% 95.6% 94.9% 94.2% 93.5% 92.8% 92.1% 91.4% 90.7% 90.1% 89.4% 88.7% 88.1% Cumul PV 640.00 917.92 1193.76 1467.56 1739.31 2009.04 2276.77 2542.50 2806.25 3068.04 3327.88 3585.79 3841.78 4095.86 4348.05 4598.36 4846.81 5093.41

Month 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17

Payment $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 280 280 280 280 280 280 280 280 280 280 280 280 280 280 280 280 280 280

Total 640 280 280 280 280 280 280 280 280 280 280 280 280 280 280 280 280 280

PV 640.00 277.92 275.85 273.79 271.76 269.73 267.72 265.73 263.75 261.79 259.84 257.91 255.99 254.08 252.19 250.31 248.45 246.60

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18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36

$ 280 $ 280 $ 280 $ 280 $ 280 $ 280 $ 280 $ 280 $ 280 $ 280 $ 280 $ 280 $ 280 $ 280 $ 280 $ 280 $ 280 $ 280 $ 20,000

$ 1,200

$ 280 $ 280 $ 280 $ 280 $ 280 $ 280 $ 280 $ 280 $ 280 $ 280 $ 280 $ 280 $ 280 $ 280 $ 280 $ 280 $ 280 $ 280 $ 21,200

87.4% 244.76 5338.17 86.8% 242.94 5581.11 86.1% 241.13 5822.25 85.5% 239.34 6061.58 84.8% 237.56 6299.14 84.2% 235.79 6534.93 83.6% 234.03 6768.96 83.0% 232.29 7001.25 82.3% 230.56 7231.81 81.7% 228.85 7460.66 81.1% 227.14 7687.80 80.5% 225.45 7913.25 79.9% 223.77 8137.02 79.3% 222.11 8359.13 78.7% 220.45 8579.58 78.1% 218.81 8798.39 77.6% 217.18 9015.58 77.0% 215.57 9231.14 76.4% 16199.96 25431.10

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property taxes

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