Leasing a car differs from renting one in that your monthly payments go toward the cost of vehicle depreciation and the lease term is typically longer than a rental. What Is the Residual Value of a Vehicle?Ī vehicle's residual value is its total value at the end of the lease or the amount you'll pay to purchase it at the conclusion of its lease term.
Here's all you need to know about residual values, including how you can use them to save money. This anticipated or estimated value can be crucial if you want to determine the monthly payment you'll have to make on your lease and get the best deal possible. Considering A Lease On A New Car? Compare Rates From Lenders Here: Should you decide to purchase a leased car, the price you pay is the vehicle's residual value, plus any fees you must pay. But what is residual value, and why is it so important? Simply put, the residual value or salvageable value in a lease contract is the anticipated value of the vehicle at the end of the lease period, and lessors use it to set your monthly lease payments.
If you're thinking about leasing a car, you might hear the term residual value come up a few times.
