How is residual value calculated on a lease

Asked by 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

94,855

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

  • care questions & need advice on 911S 06 3 answers

    Hi, I really need help on some advice and care issue. I am car care noob who got 06 911 S last year(2009) april. It was a certified used car lease and had 28,000 miles. 36 month lease. WHAT I WANT...

    2006 Porsche 911 Carrera S

    -

    Maintenance & Repair

  • lease payments 3 answers

    How do I figure out the lease payments

    2014 Porsche Boxster S

    -

    General

  • can you lease a used car? 1 answer

    2010 Porsche Panamera 4S

    -

    General

  • Don't know what to do about my Porsche Cayenne decision. 11 answers

    I am looking to buy a Porsche Cayenne and debating on whether or not I should get a S or Gts. I love the Gts sound but they are rare and expensive. I did like the S also when I drove it and its a lo...

    2014 Porsche Cayenne S

    -

    General

  • To buy or not to Buy Porsche Cayenne 25 answers

    Hello, Looking for some hard fact answers! Should I buy a used Porsche Cayenne? I love the way look and drive, but am I just going to be wasting my cash. I can't afford new but wiling to spend 18 gr...

    Porsche Cayenne

    -

    General

Search Porsche 911 Questions

Porsche 911 Experts

#1 Michael Kane
Michael Kane
Reputation 950
#2 Andrew Dickens
Andrew Dickens
Reputation 510
#3 tntjobs
tntjobs
Reputation 470
View All

Related Models For Sale

Used Porsche Cayman
17 Great Deals out of 686 listings starting at $14,995
Used Porsche Boxster
47 Great Deals out of 1,341 listings starting at $2,295
Used Chevrolet Corvette
137 Great Deals out of 20,665 listings starting at $3,499
Used Porsche Panamera
56 Great Deals out of 1,770 listings starting at $29,885
Used BMW M3
53 Great Deals out of 1,945 listings starting at $4,000
Used Porsche Cayenne
102 Great Deals out of 5,528 listings starting at $3,999
Used Audi R8
15 Great Deals out of 599 listings starting at $61,999
Used Mercedes-Benz SL-Class
67 Great Deals out of 3,140 listings starting at $3,500
Used Nissan GT-R
591 listings starting at $49,500
Used Ford Mustang
301 Great Deals out of 45,096 listings starting at $2,000
Used Chevrolet Camaro
158 Great Deals out of 35,580 listings starting at $1,995
Used Mercedes-Benz S-Class
158 Great Deals out of 6,422 listings starting at $2,300
Used BMW 3 Series
1,131 Great Deals out of 35,653 listings starting at $900
Used Maserati GranTurismo
21 Great Deals out of 1,040 listings starting at $31,995

Used Cars For Sale

2017 Porsche 911 Carrera S Cabriolet For Sale
152 listings starting at $125,997
2016 Porsche 911 Carrera S Cabriolet For Sale
13 listings starting at $119,515
2015 Porsche 911 Carrera S Cabriolet For Sale
24 listings starting at $88,888
2014 Porsche 911 Carrera S Cabriolet For Sale
29 listings starting at $76,750
2013 Porsche 911 Carrera S Cabriolet For Sale
23 listings starting at $74,995