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BMW 3-Series (E90 E92) Forum
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lease term and residual
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11-16-2011, 12:59 AM | #1 |
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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, 05:39 AM | #2 |
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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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