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

107,645

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 people found this helpful.
Best Answer Mark helpful

Your Answer:

Porsche 911 Experts

  • #1
    Michael Kane
    Reputation
    1,090
  • #2
    Andrew Dickens
    Reputation
    720
  • #3
    Stephen Smith
    Reputation
    610
View All

Related Models For Sale

Used Porsche Cayman
15 Great Deals out of 619 listings starting at $15,490
Used Chevrolet Corvette
83 Great Deals out of 15,126 listings starting at $3,620
Used Porsche Boxster
13 Great Deals out of 1,074 listings starting at $3,495
Used Audi R8
6 Great Deals out of 591 listings starting at $59,490
Used Porsche Panamera
35 Great Deals out of 3,371 listings starting at $21,500
Used BMW M3
21 Great Deals out of 1,523 listings starting at $5,500
Used Porsche Cayenne
119 Great Deals out of 4,806 listings starting at $3,900
Used Mercedes-Benz SL-Class
53 Great Deals out of 3,011 listings starting at $2,999
Used Maserati GranTurismo
8 Great Deals out of 1,113 listings starting at $28,495
Used Mercedes-Benz S-Class
139 Great Deals out of 7,028 listings starting at $3,250
Used Ford Mustang
273 Great Deals out of 37,795 listings starting at $1,350
Used Aston Martin V8 Vantage
7 Great Deals out of 166 listings starting at $36,000
Used Nissan GT-R
494 listings starting at $55,995

Used Cars For Sale

2017 Porsche 911 Carrera S Cabriolet For Sale
49 listings starting at $102,900
2016 Porsche 911 Carrera S Cabriolet For Sale
12 listings starting at $84,995
2015 Porsche 911 Carrera S Cabriolet For Sale
42 listings starting at $76,894
2014 Porsche 911 Carrera S Cabriolet For Sale
21 listings starting at $63,950

Content submitted by Users is not endorsed by CarGurus, does not express the opinions of CarGurus, and should not be considered reviewed, screened, or approved by CarGurus. Please refer to CarGurus Terms of Use.