How to Obtain Lease Residuals

When you lease a vehicle, you reduce its value by using it over time. To calculate the loss of vehicle value during a lease term, vehicle lessors use residual value. Also known as lease-end value, residual value refers to the value of the vehicle at the end of the lease term. The lessor uses this value to determine the amount of payments you make each month and the amount you need to pay if you want to buy the vehicle at the end of the lease term. Residual values may vary from one lender to another.

Instructions

1

Check the Residual Value Guide, which is released by the Automotive Lease Guide (ALG), to determine the residual value forecast for the vehicle model you want. According to MSN Autos, most vehicle lessors use the ALG values as the standard when determining an appropriate residual value.

2

Approach several vehicle lessors to find information regarding financing. Specify the model and make of the vehicle, how long you intend to lease it and how much you plan to drive it. Usually, financing companies affiliated with just one vehicle manufacturer offer the highest residual values. Large banks sometimes offer similarly high residual values, according to MSN Autos.

3

Multiply the residual factor percentage by the price of the vehicle if you were to purchase it now. For example, if a $50,000 car has a residual value of 50 percent after three years, it will be worth $25,000 at the end of a three-year lease.