How is residual value calculated on a lease

ca1surf
0

Asked by ca1surf Mar 29, 2013 at 11:36 AM about the 2012 Porsche 911 Carrera S Cabriolet

Question type: General

When I'm in the finance office deciding on a lease verses purchase how do they calculate the residual value of a cars worth in 3 years

1 Answer

tenspeed
53,385

Residual value in car leasing, refers to the estimated value of a leased vehicle at the end of the scheduled lease period. The longer the lease, the lower the residual value, as compared to the original MSRP sticker price. Residual values play a key part in the calculation of lease monthly payments since leases are based on the difference between residual value and negotiated selling price. The higher the residual, the lower the lease cost for a given selling price. You can negotiate the value to lower your monthly payment within reason.

1 out of 1 people think this is helpful.
Best Answer

Your Answer

Add photo

Related Questions

Search Porsche 911 Questions

Porsche 911 Experts

#1 Tom Demyan
Tom Demyan
Reputation 180
#2 Michael Kane
Michael Kane
Reputation 150
#3 Smitty22
Smitty22
Reputation 110
View All

Related Models For Sale

Used Porsche Cayman"
17 Great Deals out of 803 listings starting at $19,850
Used Porsche Boxster"
82 Great Deals out of 1,689 listings starting at $5,000
Used Chevrolet Corvette"
307 Great Deals out of 11,063 listings starting at $3,900
Used Porsche Cayenne"
82 Great Deals out of 2,851 listings starting at $8,995
Used BMW M3"
91 Great Deals out of 1,392 listings starting at $4,990
Used Porsche Panamera"
21 Great Deals out of 1,595 listings starting at $46,988
Used Mercedes-Benz SL-Class"
105 Great Deals out of 2,475 listings starting at $4,250
Used BMW 3 Series"
1,223 Great Deals out of 37,756 listings starting at $1,200
Used Mercedes-Benz E-Class"
530 Great Deals out of 14,385 listings starting at $1,990
Used Audi R8"
11 Great Deals out of 380 listings starting at $75,980
Used Mercedes-Benz S-Class"
237 Great Deals out of 7,262 listings starting at $2,999
Used Nissan GT-R"
3 Great Deals out of 635 listings starting at $55,000
Used Ford Mustang"
1,048 Great Deals out of 25,761 listings starting at $1,329
Used BMW 6 Series"
87 Great Deals out of 3,231 listings starting at $12,500
Used Jaguar XK-Series"
51 Great Deals out of 993 listings starting at $4,990

Used Cars For Sale

2014 Porsche 911 Carrera S Cabriolet For Sale
3 Great Deals out of 66 listings starting at $95,900
2013 Porsche 911 Carrera S Cabriolet For Sale
4 Great Deals out of 44 listings starting at $89,990
2012 Porsche 911 Carrera S Cabriolet For Sale
3 Great Deals out of 43 listings starting at $73,480