Car Value at the end of lease


What do I gain by leasing a car that’s value stays at the end of the lease vs. a car that’s value goes down?

Don’t quite understand the question… isn’t the car’s residual value determined at the time you lease?

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Yes but what’s the gain if a cars value starts or not

I have no clue what you’re asking here.


If the actual value of the vehicle is higher than the residual value at lease end (set when you lease the vehicle) you have equity in the vehicle that you can capture by buying/reselling or having someone buyout your lease (if it’s one of the manufacturers that allows it).

If the actual value of the vehicle is lower than the residual value at lease end, you can turn the vehicle back in to the leasing company and walk away without being upside down financially.

Is that what you wanted to know?


Is there any advantage of leasing a vehicle that has a high residual value (that it keeps its value)?

Yeah. Lower payments.

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Most though not all vehicles with a high rv can have a high mf offsetting the perceived “savings”.

That what is great about this site and the calculator, is that once you have mf, rv, and potentially even incentives from Edmunds forums you can plug in the numbers and see what discount is needed to get to your target price.

You are only going to get a “good” lease (and that is relative now) by having a combination of factors including a high residual, low money factor (interest rate), and a good discount (including incentives).

You are paying for the portion of the car’s value that you “use,” so making that number as small as possible with a high residual value is important. Some manufacturers (a lot fewer now) will subsidize residual values, and some manufacturers have terrible residuals (Alfa Romeo for example) so you need a huge discount to make them a decent lease.

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