Reply to "Calculating Lease Costs and Effective Purchase Price W/O interest"

Old GloryMaven VIP

If Montecore's explanation didn't cover it for you, then there must be some confusion what the question is. The monthly payment divided by the rate factor is the original funding amount. You'll notice there is no multiplication in this equation so if there is in yours, then your goal must be something different than determining the original purchase price. If you are trying to replace a unit by providing something for the same monthly payment, Montecore's equation tells you what your sales price needs to be...Their monthly payment of $187.24 divided by your lease rate factor of .0302 = $6,200. That is the price your equipment has to be for you to be able to offer the customer the same $187.24 payment that they have been used to.

12/11/092:54 PM

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