Residual Value of Cars
When leasing a vehicle, there are several things to keep in mind. You'll need to determine how many miles you'll drive each year. Plus, when the lease term is up, you'll need to decide if you want to return the car to the dealership or purchase it.
If you want to purchase it, you'll need to think about residual value. We'll go over what that is below and how that could affect which vehicle you lease. Read through our informative guide and contact us at FreeVehicleValues.com if you have any questions.
What Is Residual Value?
Residual value is the amount you can buy a car for at the end of a lease term. When a person gets a lease, they usually return the vehicle to the dealership at the end of the leasing period. However, if you've grown attached to the car, then you may want to buy it to enjoy it for many more years and miles.
If that's the case, then you'll want to take the residual value into consideration. This is usually set by the company that finances a lease. They take into account various factors, including:
- Expected depreciation
- Historical demand for the vehicle
- Effect of expected mileage on the model's value
Why Knowing About Residual Value Is Important
It's important to consider residual value when getting a lease. It'll not only help you understand what you're paying now, but also what you'll be paying later if you decide to buy the car.
You may want to lease a vehicle because you don't want to make a large down payment, but you also want to keep your monthly payments low. However, after the lease term is up, you might become so attached to the car that you want to buy it.
You could have gotten an inflated residual value to give you a low monthly payment (which is referred to as a subvented lease). If that's the case, then you may end up having to pay more than if the residual value was never inflated in the first place. However, if the difference between the car's price and residual are lower, then the monthly payments for your auto loan will be lower.
Before you lease a vehicle, you'll want to check its residual value. This is especially the case if there's a strong possibility that you'll want to buy the car after the lease period has ended.
Buying & Selling a Leased Automobile
If the residual value of the car looks good, then it'll be a lot easier to buy. If there comes a point when you want to sell this automobile, our services will make it easy to do so.
Just enter in details about your vehicle, and you'll get up to four cash value offers for the car. These aren't estimates, but rather the exact amount of money that you could get. Once you receive those offers, you just select a buying center, and we'll give you the maximum value for the vehicle. You can then take that money and put it toward the lease or purchase of a new car.
You don't have to pay to use our services nor do you have to supply any personal information. We'll just help make the selling process as easy as possible for your peace of mind.
Get a Cash Value Offer for Your Car Today
If you need more information about the residual value of cars, then contact us at FreeVehicleValues.com.
When you're ready to get a cash value offer for your purchased vehicle, just grab your VIN (vehicle identification number) and find out how much the car is worth today!