The Lease Value Ratio (LVR) is the heart, soul, passion and entire purpose of carleasetips.com. We wanted to make it easy to evaluate car leases. The LVR is displayed as a single number percentage, or ratio, which quickly tells you how much car you are getting for your average payment. The lower the LVR, the better the car lease deal.
How To Calculate Your Lease Value Ratio
LVR is calculated as follows:
Average Car Payment / MSRP
The resulting numerical percentage is usually between 1 and 1.5 percent; however there are exceptions on both sides of the rule. I’ve seen some really amazing car leases where the lease value ratios below 1.00% and some really lousy car leases where the Lease Value Ration tops 1.50%. So, how do you know by the number a good lease from a bad one? Based on the monthly car lease figures and data we’ve accumulated over the past two years, here is a guide to help you quickly decide.
LVR Lease Value Ratio Guidelines
- Excellent Lease: 1.10% and Below
- Good Lease: 1.11% – 1.20%
- Average Lease: 1.21% – 1.36%
- Poor Lease: 1.36% and Up
Remember, the lease value ratio is only a number. Each of us lease cars for slightly different personal reasons. There may be certain models of cars that simply don’t look like a good lease on paper, but when you compare them to other cars in their class, perhaps they fair very well.
|Down Payment Doesn’t Include First Month’s Payment|
|Average Car Payment||$305.56||Total Cost / Lease Term|
|Total Cost of Lease||$11,000.00||(Monthly Payment x Lease Term) + Down Payment|
|Lease Value Ratio – LVR||1.22%||Average Car Payment / MSRP|
The LVR should be used only as a rule of thumb to give you a quick snapshot of whether or not you’re getting a reasonable good car lease payment or not. Below, is a formula that you can paste into your spreadsheet for helping you determine your own Lease Value Ratio.
Use the Free Car Lease Tools
The Rate-My-Lease and Car-Lease-Calculator tools will calculate the LVR for you.
4 thoughts on “Lease Value Ratio”
advanced calculator did not work for me
Could you describe the problem you are having? You do have to have all of the data to input into the fields. If you know your interest rate, you can convert it to the money factor by dividing it by 2400.
For example, if your lease is based on an interest rate of 5%, the money factor is 5 / 2400 = .00208
Make sure you’re on this page, Advanced Lease Calculator
for some reason you make no mention of tax
Tax is a fixed variable that is required whether you purchase a car or lease it and does not affect the value of the deal.