What is residual or a residual payment?
The residual value is the amount that you can buy the vehicle for at the end of the lease should you decide to purchase. This value is calculated using various factors related to the value of the vehicle at the time the lease is started and the value of the vehicle at the end of the lease term. At the end of your lease your residual value can be paid in a variety of ways: 1) You can pay off the residual value in a single payment. 2) For a small fee you can start a new lease based on the residual value of your vehicle. Typically these secondary leases are for a considerably shorter term and continue with payments at approximately the same amount as your previous lease. 3) You can decide not to pay the residual and simply turn the vehicle back in. We understand that the residual payment can be confusing. If you have any questions regarding the residual for a particular vehicle, please contact us for a “Lease Extension Estimate Worksheet”.
