Residual Value

Definition

The estimated value of a leased car at the end of the lease term.

Try it now

Lease vs Buy

This value is determined at the beginning of the lease and is used to calculate your monthly payments.

Related Tools & Calculators

Continue your journey with these related tools

Lease vs Buy

Decide whether leasing or buying is the better financial option for your situation.

Related Automotive Terms

Expand your understanding with related concepts

ABS (Anti-lock Braking System)

A safety system that prevents wheels from locking up during braking, allowing the driver to maintain steering control.

AWD (All-Wheel Drive)

A drivetrain that employs a front, rear and center differential to provide power to all four wheels of a vehicle.

Chassis

The load-bearing framework of an artificial object, which structurally supports the object in its construction and function.

Depreciation (Automotive)

The decline in a car's value over time.

Engine Displacement

The total volume of air/fuel mixture an engine can draw in during one complete engine cycle.

View all Automotive terms

This software is for simulation and planning purposes only. Outputs are estimates based on your inputs and do not constitute professional financial, legal, or tax advice. Always consult a qualified advisor before making business decisions.