FlexiQuiz - Quiz 1

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1. What is the Risidual Value of a car?

a professional estimate of what a specific vehicle will be worth at the end of the lease contract. It reflects the expected depreciation of the vehicle and is determined before the lease contract is signed. What you pay for a lease is determined by subtracting the residual value from the cap cost, then adding fees and interest. Residual value is an educated guess and may be higher or lower than the car's actual retail value as a used car.

The purchase price. It may or not be the same as the residual value. If the residual is way off at the end of the lease, the dealer may make or lose money on the deal when they sell the vehicle on the open market.

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