financing
Residual Value
Estimated value of asset at end of lease or useful life
Also known as: lease end value, residual, end of lease value
What You Need to Know
Residual value is the predicted value of an asset at the end of its lease term or useful life. In vehicle leasing, it determines the buyout price. Higher residual values typically result in lower monthly lease payments since the lessee is only paying for the depreciation.
Sources & References
This information is sourced from authoritative government and academic institutions:
- consumerfinance.gov
https://www.consumerfinance.gov/owning-a-car/leasing-a-car/
Related Calculators & Tools
Put your knowledge into action with these interactive tools: