| When you go to get a lease, you may hear the | | | | * You have a $20,000 car you lease for three years |
| salesperson use the term 'residual' on occasion. This | | | | * At the end of the lease, the estimated value due to |
| may make you ask what exactly is a car lease | | | | lease depreciation is $10,000 |
| residual and how does it affect new car lease deals? | | | | * Your payments are: $10,000 / 36 months = $277 per |
| Here it is explained simply and easily for you: | | | | month |
| What Is The Residual? | | | | Therefore, we know that because of the lease |
| The residual value of a car is the amount that you can | | | | residual of $10,000, a new lease deal will cost you |
| buy the car for at the end of a lease if you decide | | | | $277 per month. |
| you want to purchase the car at the end. The best | | | | How Can You Get Good Deals? |
| lease options have this in the contract for you. | | | | Obviously, by having lease deals that are short, you |
| This value is used to help determine your monthly | | | | can pay less on a used car. To get the lowest lease |
| payments as well - so it is really important. | | | | deals, do your own car lease residual calculations on |
| How Is It Calculated? | | | | new car lease deals to see how much you will pay on |
| The value is calculated quite easily, and here is how it | | | | monthly payments. Having a less-valued car means |
| is calculated using a typical three year lease deal: | | | | less payments - and less money out of your bank. |