This is the only element of a lease deal that a dealer directly controls. Since a lease is simply another form of financing, interest charges apply. These interest charges are known as money factor . Again, a small money factor results in lower monthly lease payments. A good lease means getting a good price on a vehicle that will not quickly depreciate in value.
Residual value is an estimate of a vehicle's wholesale value at the end of a lease term.
The longer the lease, the smaller the residual value. Your lease payment is primarily determined by the difference between cap cost and residual value, which is the amount that the value of the vehicle depreciates during the lease. Finance charges and sales tax will also be included in your monthly payment. There may be certain fees associated with your lease. The fees that lease providers charge vary both in kind and amount.