Just curious if anyone is aware of somewhere where I can see the highest residual value cars? I understand the the residual value changes month after month but when shopping for a car I’m always trying to find cars with the highest 36 month residual value, because those would have the best lease value. Would be helpful to see a ranking list.
Not necessarily.
Rv is only one piece of the puzzle. You can easily kill a lease value on a vehicle with relatively high rv with a sky high mf, etc.
The best lease value comes from a combination of higher rv, low mf, dealer discounts, and incentives. You cant get there with just one.
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Frontier, Tacoma, 4Runner, Defender (specific spec). Those are just some examples. I would narrow it down to a segment of vehicle you’re interested in, then check edmunds for RVs, then select from there.
If you need a truck, no reason to get information on sedan RVs.
If you want hours of fun, Ally publishes their residual value guide on this page;
Another good source is the vehicle hot sheets from AFG
https://afg.force.com/LenderPortal/s/vehicle-hot-sheets
You also have the site CarEdge, but I tend to question their data;
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True, but I’m more interested in borrowing less money from a bank to drive the car. Which is ultimately why im always interested in higher residual values, because in a sense you’re borrowing less
Take the Jeep 4xe as an example - it was a great deal due to the great discounts paired with an incentive that brought your total amount financed really low despite having a standard residual amount. With MF rising, it’s becoming less of a deal than it once was.
Can’t look at just one factor and say it’s a great value.
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Does it really matter if your payment is $600/mo in depreciation or $600/mo in rent charge? Its still $600/mo.
And rv only sets one side of the depreciation amount. Ultimately the money youre “borrowing” is the delta between the cap cost and the rv. You’ll potentially “borrow” less with a lower rv if you got a bigger discount/more incentives than something with a high rv you got at msrp.
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Then get any CCAP lease and do a one-pay. $0 borrowed. Wish granted.
Doesn’t that just save you on interest?
Why are you hung up on rent charge vs depreciation?
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“Just”? What is your objective in borrowing less beyond saving interest?
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Because you’re paying for more of the car.
If the RV is 50% the bank makes you pay for 50% of the value of car vs if the RV is 65% the bank makes you pay for 35% of the value of the car, so you are “renting” 35% of the value vs 50%
Lets look at a hypothetical.
You have a $600/mo lease because the rv is 50% with next to 0 mf.
You have another lease thats $750/mo, the rv is 70%, but the mf is .0030.
Which one is more expensive?
Where you gonna find a 0 MF?
What has your research shown?
I have a .00053 MF on my Bolt EUV. So not quite zero, but next to zero like @mllcb42 was saying.
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My point is you’re not finding a low MF now
Hellcat is almost 0 currently if memory serves.
Even still, theres a huge difference between a .00150 mf and a .00350 mf… both of which arent unheard of currently
he said it was hypothetical.
You said you wanted to borrow as little as possible, so borrow nothing and do a one-pay lease.
You are being rather difficult to pin down, hence the questions and hypotheticals.
On one hand, you say you are less concerned with MF and more concerned with amount borrowed. This is focusing on RV
On the other hand, you say you are less concerned with amount borrowed and more concerned with amount of interest paid. this is focusing on MF
These are at direct odds with each other.
On the same $40k car, do you want to borrow $20k at 7.5% interest or $25k at 2% interest? Both net you the same payment. The former is RV-based (you’ve borrowed less at high interest), while the latter is MF-based (more debt at lower interest). You get the same car for the same payment either way.
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Would you rather pay more in interest than in depreciation like a Nissan Frontier 18-months? Great monthly payment but the payment is mostly full of interest due to a high residual and a high MF.