ST Alpha - "if you're leasing, what does residual value matter?" (Reading a Post)

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In response to "Been to like 6 car dealerships today. American cars are terrible for leasing, they have low residual compared to Japanese cars. " by James Bond (aka Igor)

if you're leasing, what does residual value matter?

Posted by wheezy (aka chris) Jun 6 '10, 18:43

the dealer takes it back at the end of the lease term, no?

Responses:

Your lease payment is calculated based on the residual. The lease payment includes the depreciation cost (selling price - residual at the end lease) + - James Bond (aka Igor) Jun 6, 18:46 9
- so then you can use that as leverage with domestic dealers to give you a better lease price -- nm - wheezy Jun 6, 18:50 7
  - The residual is determined by the leasing company. The dealer has no control over it. - James Bond (aka Igor) Jun 6, 18:54 6
    - the leasing company is usually the financing arm of the manufacturer, i'm guessing. your line - wheezy Jun 6, 18:56 5
      - Right and I do tell them that. But they know they can't beat the numbers of the imports and many just straight up say it. They can only lower the - James Bond (aka Igor) Jun 6, 18:59 4
        
        is there any kind of credit union you can join...get your own financing first - zdroid Jun 6, 19:40 1
        
        We have good credit and from my experience I always give us our credit report before we sign the papers. -- nm - James Bond (aka Igor) Jun 6, 19:43
        
        I assume you've tried some of the imports? -- nm - Beryllium (iPhone) Jun 6, 19:18 1
        
        Yeah, I currently have one. I will likely get the same car just the new version of it. Can't beat the price/features. -- nm - James Bond (aka Igor) Jun 6, 19:22
- blah.. not "sell it for me" but "sell it for more" later. -- nm - James Bond (aka Igor) Jun 6, 18:48
this is true. Either a lease return, or a lump-sum payment at the end to complete the purchase -- nm - Beryllium Jun 6, 18:45 1
- The residual matters, see above. :) -- nm - James Bond (aka Igor) Jun 6, 18:47

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if you're leasing, what does residual value matter?

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