05-31-2006, 10:30 PM
|
|
Hummer Veteran
|
|
Join Date: Feb 2006
Location: McCandless PA
Posts: 108
|
|
Re: June GMAC Residuals and Money Factors??
Quote:
|
Originally Posted by Wisha Haddan H3
What are "residuals"?
|
http://leaseguide.com/lease07.htm
"Residuals are usually stated as a percentage of MSRP. A 36-month, 50% residual on a new $20,000 car means that its estimated depreciated value at the end of a 3 year lease will be $10,000. The actual value at the end of 36 months might be higher or lower.
Residual percentages decrease as the length of a lease, called the lease term, increases. This is because the older a vehicle gets, the less it's worth. For example, the 24-month residual on a particular car might be 57%, decreasing to 50% for 36 months, then to 44% for 48 months, and 39% for 60 months.
Residuals fall rapidly in the first 24 months, then more slowly in later months. This is why shorter term leases are more expensive than longer leases."
|