Auto Lease

From the main page select Auto Lease. Auto Leases is another of the products that LoanShark computes and analyzes. 

Auto Leases are typically blended interest plus principal payments paid over a short term, just a few years. You essentailly agree to return the car within the allowable amount of mileage after a certain amount of time. There is also an agreement as to what the car will be worth at that future date, known as the residual amount. How the auto lease is calculated is slightly different because not all of the principal is repaid over the term of the lease. 

Interest is calculated on the amount financed, which is the purchase price plus all other expenses minus the deposit, if any. The principal repaid is the amount financed minus the residual, because that portion isn’t repaid. LoanShark takes care of how this is calculated. It is important to make sure to include all additional costs in determining the purchase price. There are typically a lot of hidden costs associated with the lease, such as, the dealer preparation and freight costs. Taxes are applied to the payment and the amount varies depending on where the vehicle is leased.

Get help by clicking on the Auto Lease logo. 

Enter the purchase price, the deposit, the interest rate and the term of the lease and the residual value, which is the agreed upon estimated value of the car at the end of the lease term.

Select the payment frequency, i.e. how often are the payments. You can choose between Monthly, Weekly or Biweekly payment frequencies.

You can get a quick summary of the payment amount and the total interest by selecting Basic. LoanShark will display the payment details. 

To get a more detailed summary, select Details. LoanShark will display a loan summary and the loan amortization tables. This shows exactly how much interest is paid with each payment until the end of the term. 

To change the lease parameters, just click the arrow, top left of the screen, and select Basic or Details again.

This is a summary of the auto lease along with the amortization tables. 

The amortization tables list the payment number, the principal balance remaining after this payment, the portion of the payment that went towards the principal to reduce the loan amount owing, the amount of interest paid to the lender and the total interest paid so far. As you can see, after the first payment, the total interest paid is the interest portion of the very first payment. As the payments progress, the total interest paid increases.

Where LoanShark really excels is in its advanced reporting and analysis engine.  That’s covered next.

Selecting PDF instructs LoanShark to generate and email a comprehensive report outlining the the auto lease details, the amortization tables and important suggestions and recommendations. In addition to that, LoanShark provides a number of charts and graphs visually demonstrating the impact of the varying the parameters of the loan, such as, the re-payment period, the interest rate and the payment frequency. The report constructed is customized and delivered to the saved email stored in the settings.  When the report has been generated a banner is displayed, as shown, indicating the report was created and emailed.

The following are extracts from a sample LoanShark report. Depending on the complexity of the loan product the contents of the report will vary.

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