KZN Business Chambers Council
KZN Business Sense


KZN Business Sense News

Back to overview


Car Lease Payments

If you’re looking to lease a car but are worried about the how much the payments will be, you can calculate them yourself. However, you can’t assume that the business you’re signing the lease with will hold true to the amount you calculated. At least, you’ll have a rough idea of what you’ll have to pay every month.

In order to calculate your monthly fee, you need:

The price of the car & the price you’ve negotiated
The residual percentage of the car
The length of the lease
The admin fee
Take the car’s price and multiply it by its residual percentage to get the residual value. Take your negotiated sales price and add in all the fees you'll have to pay, this is the gross capitalized cost. Take the total amount of the deposit, trade-in equity or rebates and add them together, this is the capitalized cost reduction. Subtract the capitalized cost reduction from the gross capitalized cost, the result is the adjusted capitalised cost. Subtract the residual from the adjusted capitalized cost. This is your depreciation amount, which is the basis of your lease payment. Divide the depreciation amount by the months of the lease to get your base payment amount.

This may seem like a small number but be aware that tax still needs to be added. Most of this information can be provided by the business you are looking to lease from. If this is too complicated, there are payment calculators available online that you can use.

Click on to start your application

 Car Lease Payments.JPG

Back to overview