Question 1

What percentage of income should a lease payment be?

Accepted Answer

A common guideline is 10–15% of net monthly income for total transportation cost (payment + insurance + fuel). For the lease payment alone, target under 10% of net income.

Question 2

Why does the affordable MSRP change so much with residual?

Accepted Answer

Residual is the largest lever in lease math. A 5-point swing in residual percentage can change your affordable MSRP by 15–20% because you're financing the depreciation, not the full price.

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