With interest rates expected to continually increase in 2018, despite the recent stock market sell-off, and used car prices continuing to fall this year, mostly due to rising supply, car shoppers often ask how rising interest rates and falling residuals may impact their payments.

Swapalease.com conducted an analysis of both scenarios taking into account a typical vehicle with an MSRP of $35,000. Here are the assumptions:

Term: 36 month lease
Residual: 49%
Interest Rate: 4.00%
Monthly Payment: $604.83**

Here are the breakdowns at varying interest rate levels, as well as a residual rate of 49% and 50%:

Residual Money Factor Monthly Pmt.
50% 3.00% $ 573.51
50% 3.25% $ 579.05
50% 3.50% $ 584.60
50% 3.75% $ 590.15
50% 4.00% $ 595.69

49% 3.00% $ 582.79
49% 3.25% $ 588.30
49% 3.50% $ 593.81
49% 3.75% $ 599.32
49% 4.00% $ 604.83

**Full negotiated price sheet can be shared upon request

About Swapalease.com:
Headquartered in Cincinnati, Ohio, Swapalease.com is the world’s largest automotive lease marketplace and the pioneer in facilitating lease transfers online. More specifically Swapalease.com matches individuals who want to get out of their lease with people who are looking for short-term lease agreements. Prospective buyers can search the listings for the exact vehicle they want, and then register for a nominal fee, allowing them to use Swapalease.com’s safe online system to contact the prospective seller and close the deal. For more information about Swapalease.com or how to exit your lease early, call 866-SWAPNOW or visit www.swapalease.com.