Q » How does the concept of 'residual value' relate to car leasing?

17 Oct, 2025

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A » Residual value in car leasing refers to the estimated worth of the vehicle at the end of the lease term. It is a key factor in determining monthly lease payments, as higher residual values typically result in lower payments. Essentially, it predicts the car's depreciation, and a higher residual minimizes the lessee’s cost by reducing the proportion of the car's value they are financing.

Michael

17 Oct, 2025

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A »In car leasing, 'residual value' refers to the estimated worth of a vehicle at the end of the lease term. It's a key factor in determining monthly lease payments, as it represents the lessor's expected value of the vehicle after the lease period, influencing the overall cost of the lease.

David

17 Oct, 2025

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