When residual percentages are quoted here, should a dealers pricing reflect a residual of the MSRP or a residual on the agreed sales price?
Example 50% residual
MSRP: $60,000
Sales Price: $52,000
Should the residual be $30,000 or $26,000?
RV is based on MSRP.
Residual is based off MSRP. So whatever you negotiate off MSRP is the difference you will pay at lease end if you want to buy the car ($30k from example). The difference between the sales price and that residual amount is what you pay for the lease period.
What do you mean by this? The RV is set and what you pay at the end of the lease, independent of the sales price. Lower sales prices lowers the depreciation you pay during the lease.
Saying if residual is $30k from a $60k car and sales price is $45k, you lease the $15k and buy at end of $30k is all.
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