Quotes Operating Lease Test Information
This screen is accessed through the Quote Scenario screen.
To provide an operating lease test.
Layout / How To
Defaults for these calculations are set up on the Quotes Defaults screen. These values are stored into new quotes when the quote is created. Each scenario has its own values, and these values may be edited for each scenario.
Useful Life Test
This will take the Useful Life (in years) and subtract the age of the asset (in years). The result must be greater than or equal to 25% of the useful life.
The age of the asset is determined by the difference between the In Service Date on the Vehicle Inventory screen and the Contract Date on the scenario.
Economic Life Test
This will take the Useful Life Percentage times the Useful Life to determine the Estimated Economic Life. This is typically 7 years times 75% to equal 5.25 years. Any lease term plus the age of the asset (vehicle) may exceed this number.
Fair Value Test
This takes 90% of the Vehicle Base Cost and subtracts the Present Value of the lease. The difference must be greater than or equal to zero.
The Present Value is calculated as: (((1 + Rate)**Term ) / Rate) * Annualized Payments) / (1 + Rate)**Term
If all three of these tests pass, then ALMSys Quotes will convey that the operating lease tests passed.