What is a lease residual?
Whether you choose to buy or lease your new car should depend on a number of factors. If you are the kind of person who likes to get a new car every few years and don’t drive more than 15,000 miles per year, leasing might be the best way to go. You will want to make sure that the term of the lease is not longer than 3 years, unless you really plan on driving the vehicle for longer. It is also important that you make sure that the mileage specified on the lease will cover the number of miles you intend to drive annually. Getting out of a lease early can be very costly. When leasing, one of the advantages is that it normally requires less money down and will give you a lower payment than if you were to purchase the same vehicle. The reason is that you never buy it down to a zero balance. The “residual” or guaranteed cash value at the end of the lease is what you are buying down. In addition there might be tax advantages for auto leasing is being used for business. It is best to check wit
