Honda Lease Calculator

Honda Lease Calculator

Lease Calculation Results:

Estimated Monthly Payment: $0.00

Total Lease Cost: $0.00

function calculateLease() { var hondaMSRP = parseFloat(document.getElementById("hondaMSRP").value); var sellingPrice = parseFloat(document.getElementById("sellingPrice").value); var leaseTerm = parseFloat(document.getElementById("leaseTerm").value); var residualValuePercent = parseFloat(document.getElementById("residualValue").value); var moneyFactor = parseFloat(document.getElementById("moneyFactor").value); var upfrontPayment = parseFloat(document.getElementById("upfrontPayment").value); var salesTaxRate = parseFloat(document.getElementById("salesTaxRate").value); // Input validation if (isNaN(hondaMSRP) || hondaMSRP <= 0) { alert("Please enter a valid Honda MSRP."); return; } if (isNaN(sellingPrice) || sellingPrice <= 0) { alert("Please enter a valid Negotiated Selling Price."); return; } if (isNaN(leaseTerm) || leaseTerm <= 0) { alert("Please enter a valid Lease Term (in months)."); return; } if (isNaN(residualValuePercent) || residualValuePercent 100) { alert("Please enter a valid Residual Value Percentage (between 1 and 100)."); return; } if (isNaN(moneyFactor) || moneyFactor < 0) { alert("Please enter a valid Money Factor."); return; } if (isNaN(upfrontPayment) || upfrontPayment < 0) { alert("Please enter a valid Upfront Payment (can be 0)."); return; } if (isNaN(salesTaxRate) || salesTaxRate hondaMSRP) { alert("Negotiated Selling Price cannot be higher than Honda MSRP."); return; } // Calculations var netCapitalizedCost = sellingPrice – upfrontPayment; if (netCapitalizedCost < 0) { netCapitalizedCost = 0; // Cannot have negative capitalized cost } var residualValueAmount = hondaMSRP * (residualValuePercent / 100); var depreciationAmount = netCapitalizedCost – residualValueAmount; if (depreciationAmount < 0) { depreciationAmount = 0; // Depreciation cannot be negative } var monthlyDepreciation = depreciationAmount / leaseTerm; var financeChargeMonthly = (netCapitalizedCost + residualValueAmount) * moneyFactor; var baseMonthlyPayment = monthlyDepreciation + financeChargeMonthly; var monthlySalesTax = baseMonthlyPayment * (salesTaxRate / 100); var totalMonthlyPayment = baseMonthlyPayment + monthlySalesTax; var totalLeaseCost = (totalMonthlyPayment * leaseTerm) + upfrontPayment; // Display results document.getElementById("monthlyPaymentResult").innerText = "$" + totalMonthlyPayment.toFixed(2); document.getElementById("totalLeaseCostResult").innerText = "$" + totalLeaseCost.toFixed(2); }

Understanding Your Honda Lease

Leasing a new Honda can be an attractive option for many drivers, offering lower monthly payments compared to financing a purchase and the flexibility to drive a new car every few years. Our Honda Lease Calculator helps you estimate your potential monthly payments and total lease cost, giving you a clearer picture of your financial commitment.

Key Components of a Honda Lease:

• Honda MSRP: This is the Manufacturer's Suggested Retail Price, the sticker price of the vehicle. The residual value is typically calculated as a percentage of this amount.
• Negotiated Selling Price: This is the actual price you and the dealership agree upon for the car. This is the starting point for calculating the capitalized cost.
• Lease Term (Months): The duration of your lease agreement, usually 24, 36, or 48 months. A shorter term often means higher monthly payments but less overall depreciation.
• Residual Value (% of MSRP): This is the estimated value of the Honda at the end of the lease term, expressed as a percentage of its original MSRP. A higher residual value generally leads to lower monthly payments because you are depreciating less of the car's value.
• Money Factor: This is the lease equivalent of an interest rate. It's a small decimal number (e.g., 0.00150). To convert it to an approximate annual percentage rate (APR), multiply it by 2400 (0.00150 * 2400 = 3.6% APR). A lower money factor means lower finance charges.
• Upfront Payment / Capitalized Cost Reduction: Any cash you pay at the beginning of the lease or the value of a trade-in vehicle. This reduces the "capitalized cost" (the amount being financed) and thus lowers your monthly payments.
• Sales Tax Rate (%): The local sales tax applied to your lease payments. Tax laws vary by state; some tax the total capitalized cost, while others tax the monthly payment. Our calculator applies it to the monthly payment for simplicity.

How the Calculator Works:

The calculator uses these inputs to determine two main components of your monthly payment:

1. Depreciation Charge: This covers the difference between the car's negotiated selling price (minus any upfront payment) and its residual value, spread out over the lease term.
2. Finance Charge: This is calculated based on the money factor and the average value of the car over the lease term (the sum of the net capitalized cost and the residual value, multiplied by the money factor).

These two charges, plus applicable sales tax, make up your estimated monthly payment. The total lease cost is then the sum of all monthly payments plus any upfront payment made.

Tips for Leasing a Honda:

• Negotiate the Selling Price: Even though you're leasing, you can still negotiate the selling price of the car, which directly impacts your capitalized cost and monthly payments.
• Understand the Money Factor: Ask your dealer for the money factor. A lower money factor means less interest paid.
• Check Residual Values: Hondas generally hold their value well, which can lead to favorable residual values and lower lease payments.
• Consider Lease Incentives: Honda often offers special lease deals with reduced money factors or higher residual values.
• Mind the Mileage: Leases come with mileage limits (e.g., 10,000, 12,000, or 15,000 miles per year). Exceeding these limits can result in significant overage fees.
• Factor in Fees: Be aware of other potential fees like acquisition fees, disposition fees, and excess wear and tear charges. While not all are in this simplified calculator, they are part of the overall lease cost.

Use this calculator as a starting point for your Honda lease planning. Always confirm all figures with your Honda dealership before signing any agreement.