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aCar Lease Residual Calculator

aCar Lease Residual Calculator

Car Lease Residual Calculator

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Lease a new car and pay, with interest, less than the residual value. It all sounds like an excellent plan. But what are the odds of making it work for you? The answer depends on how you’re financing the purchase and on which car you select. Calculate your residual value with Residual Value Calculator.

Residual Value

Residual value, sometimes called salvage value, is an estimate of how much an asset will be worth at the end of its lease. It is most commonly associated with car leasing. As an example, a car worth $30,000 that is leased for 3 years can have a residual value of $16,000 when the lease ends. Residual value is not exclusive to car leases, but can be leases of any type of asset, as long as it depreciates and can be sold at value once again. For most assets, the longer the lease period, the lower the residual value. One exception to this is real estate assets, which may have higher residual values after the lease period. The term "residual value" is also often used to refer to the value of an asset after depreciation. For more information or to do calculations involving depreciation, use the Depreciation Calculator.

Monthly payments are mainly based on the difference between the cost of the new automobile (transaction price or capitalized cost), and what the car is forecasted to be worth at the end of the leasing period (residual value). Security deposits will most likely be required at signing. Additional charges may be imposed by dealers, so discuss all financing carefully before agreeing to a car leasing contract. Some lease contracts allow for the lessee to purchase the leased vehicle after the end of the lease. For more information or to do calculations regarding auto leases, use the Auto Lease Calculator.

In the context of residential house leasing, 12-month lease terms are the most popular. Other common housing lease terms can be 3, 6, 18, 24 months, or any other time frame agreed to by both parties. A lease-to-own house purchase is a lease combined with an option to purchase the property afterward, within a certain period, at an agreed-upon price. Leasing real estate can be different from other leases in that the residual value is often higher than when the lease starts, due to asset appreciation. (Source: www.calculator.net

 

 

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