Accept the fact that if the car you want to lease is not a popular model, your lease may be a bit higher than you anticipated. Calculating an actual lease payment beforehand is nearly impossible, particularly when the lease is subsidized by the automaker, but you can arrive at a ballpark figure by using the following formula, which we will illustrate using a 2000 Honda Accord EX V6 as an example. Remember that if you put any money down, or trade in your old car, you must deduct this amount from the capitalized cost. This deduction is called the capitalized cost reduction . We recommend paying the destination charge, the acquisition fee, the security deposit, and any taxes up front rather than rolling them into the lease.
Most leases also require that the first monthly payment be made at lease signing.
If this fits your budget, so does the Accord EX V6. Keep in mind that every vehicle will have a unique residual value, based on its popularity, its resale value and its reputation for reliability and dependent of the term of the lease. The trade-in value and any cash down payment should be deducted from the capitalized cost before calculating the lease. If you're upside down on your trade, which means the car is worth less than you owe on the loan, you'll need to add the difference between the balance due on the loan and the trade-in value to the capitalized cost. The example we illustrated is a straightforward lease with no factory subsidy.