Bank Rate is used to compute the subsidy (the buy-down cost). The Customer-Facing Rate drives the finance payments shown on proposals. The Lease Rate drives the Lease option payments.
Suggested range: — (30% of amortized payment) to — (1% of equipment cost).
Funding date defaults to today (Mountain Time). First payment defaults to one month after funding (no extra interest) until you change it. Interest for the days from funding to one month before the first payment is added to the balance (TValue normal amortization, 365-day year, monthly compounding). For deferred / step structures the first payment is the first touch / step payment.
Residual % applies only to the Lease option — it's the end-of-term buyout as a percent of equipment cost. Typical guide: 30% at 12/24/36 months, 20% at 48/60 months.
| Proposal | Term | Bank Pmt | Customer Pmt | Mo. Subsidy | Total Subsidy |
|---|
Total Subsidy = monthly difference × number of regular-payment months. This is the estimated cost to buy the customer rate down from the bank rate.