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BMW 3-Series (E90 E92) Forum > BMW E90/E92/E93 3-series General Forums > New & Preowned BMW Ordering / Pricing / Tracking Information Forum (including European Delivery) > lease term and residual



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      11-16-2011, 01:59 AM   #1
335 oClock
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lease term and residual

I was curious as to is a higher residual better for a lease or a lower one, and in what case?


My residual is 64%;

can somebody explain to me the benefits / costs of having higher/lower residuals on a lease

thank you
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      11-16-2011, 06:39 AM   #2
VanillaEps
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Higher residual means the car is "worth" more at the end of the lease. Which means less depreciation during term of lease. Which means lower payments.

A lower residual would make payments higher, but the car is worth less at the end of the lease term.

If you want to buy out the lease, you want a lower residual. If you just want to lease, you want a higher residual.
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