Is residual value same as purchase price at the end of lease? Residual value is based on MSRP not negotiated selling price. I think buy out price shoud be less than residual value but my lease contract is not.
Can someone explain how the purchase price
From most captives, residual is the banks assignment of value at the end of the lease. That number plus a purchase fee and tax is what you can buy the car for at the end of the lease.
Some captives do indeed negotiate at the end of the lease, but most do not.
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