Can TValue determine the commission I get on a lease?
TValue is an excellent tool to determine the commission on a lease. The commission is effectively the interest rate spread between the buy rate and the sell rate. In TValue, it is a two-step process of determining the payments with the sell rate and then inputting the buy rate to solve for the commission. It is quick and easy to do.
Can TValue calculate the implicit rate on a lease?
Yes. Just enter the appropriate cash flows such as the lease, payments, and residual, and then type “U” for Unknown for the Nominal Annual Rate. The Nominal Annual Rate is the implicit rate or the yield on the lease.
Can TValue handle payments in advance and/or residuals?
TValue has the flexibility to handle one, two, or three payments in advance with the weighted unknown feature and then fully amortize the lease. If you want to include a residual or a buyout, you can enter the residual amount before you solve for the payments.
Can TValue calculate a rate factor or determine the interest rate based on a rate factor?
TValue is a great solution to determine a rate factor or to figure out the interest rate or yield based on a rate factor. The rate factor is essentially a multiplier of the regular payments to the lease amount based on the deal structure. Once you have structured the lease, you can use your calculator to figure out rate factor percent or if you have the rate factor multiplier, you can figure out the rate.