Why do I care about residual value on a lease?
03-09-2004, 10:17 AM
#1
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Why do I care about residual value on a lease?
I am about to pick up an A4 for my daughter. We got a money factor of .0002 so the interest is extremely low. The plan is to give the car back at the end of the lease if the residual is more than the actual value of the car or buy the car if the residual is lower than actual value. What other reason do I care about residual.
03-09-2004, 10:31 AM
#2
A higher residual means that lease payments are lower.
That's how a lot of makers move cars. Rather than set a lower purchase price, they set a stupidly high residual price. You win in the end, but you would never buy it out at that price.
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