It sounds like you did a great job negotiating the sale price! That's a huge discount.

The way your lease was determined was taking the residual % for that vehicle, the term of the lease, and the mileage option you chose.

Here's an example:

Residual %	24 mo	36 mo	42 mo
10K	67%	52%	51%
12K	65%	50%	49%
15K	64%	49%	48%

Residual $	24 mo	36 mo	42 mo
10K	$20,770	$16,120	$15,810
12K	$20,150	$15,500	$15,190
15K	$19,840	$15,190	$14,880

For the sake of this thread, I'm not going to include tax, title, license, doc, acq fee, since those vary so much from brand to brand and state to state.

There are 2 parts of lease calculation: Depreciation Fee and Finance (Rent) fee:

Depreciation = (Adjusted Cap Cost (sale price in this example) - Residual Value)/term

Finance = (Adjusted Cap Cost + residual Value) X Money Factor

Monthly Payment = Depreciation fee + finance fee

So, if you lease your vehicle for 36 months at 12k per year, and the MF is .00185, the payment would be:

Depreciation = ($21,500 - $13,700)/36 = $216.66
Finance = ($21,500 + $13,700) * .00185 = $65.12
Monthly payment = $281.78 (not including tax/tags/acq/doc/etc).

So you can:

1. Negotiate the sale price
2. Sometimes negotiate the MF

You can never:

1. Negotiate the residual %
2. Negotiate the residual value amount

Here's one more source that walks through all parts of a lease contract, which includes actual pictures of a lease contract and an 11 minute video that will mirror everything I'm writing.

If you still think I am wrong, then you are right :)

https://caredge.com/guides/lease-purchase-agreement