Residual Value
The residual value is the expected value of a car at the end of a period.
What is Residual Value?
It is used in leasing. It affects monthly payments. Forecasts can be wrong. Leasing companies and specialist publishers produce forecasts for each model. Higher residual values mean lower monthly lease payments because less value is lost. Unexpected market changes, such as shifts in fuel prices or technology, can make forecasts inaccurate.
How it works
Experts estimate future value.
Why it matters for your car
Excess mileage reduces it. Damage reduces it.
Other terms
- AGM Battery
- Contact Cleaner (Electrical Cleaner)
- Control Unit Reprogramming (Flashing)
- Crossover
- Drag Coefficient (Cd)
- Four-Wheel Drive (4WD, 4×4)
- Goodwill Repair
- Grand Tourer (GT)
- Inductive Sensor
- Intercooler (Charge Air Cooler)
- Microfibre Towel
- Potentiometer
- Rain Sensor
- Snow Chains (Tyre Chains)
- Snow Foam
- Soft-close Doors
- Tyre Sidewall Damage
- Understeer
- Windscreen Chip Repair
- WLTP (Worldwide Harmonised Light Vehicles Test Procedure)