Important Notice: Our web hosting provider recently started charging us for additional visits, which was unexpected. In response, we're seeking donations. Depending on the situation, we may explore different monetization options for our Community and Expert Contributors. It's crucial to provide more returns for their expertise and offer more Expert Validated Answers or AI Validated Answers. Learn more about our hosting issue here.

Why are their such divergent views as to residual values?

divergent residual values
0
Posted

Why are their such divergent views as to residual values?

0

A used equipment dealer with a lot of refurbishment and remarketing skills can generate much higher residuals in the secondary market than can a typical lessee who resells by virtue of an occasional newspaper ad or web site auction. Like junked cars, it is often true that the parts are worth more than selling the assets in their entirety. Frankly, a lot of the variation in the lease rates quoted will be because of different levels of knowledge and different tolerances for risk as to the residual value. When in doubt, a lessor will guess low as to residual and you will probably end up with a higher lease payment.

Related Questions

What is your question?

*Sadly, we had to bring back ads too. Hopefully more targeted.

Experts123