Load Age Lease For Free

After factoring in depreciation, the car's residual value remains. It's the estimated amount the vehicle is worth at the end of the lease. In other words, it's the buyout price and what you'll pay if you decide to purchase the car when the lease terminates.

Drawbacks of long-term leases For tenants, long-term leases reduce their mobility and adaptability, as they may be stuck with a space that is too large, too small, or unsuitable for their operations. They also bear the risk of overpaying or underutilizing the space, if the market rates or their revenue decline.

If we consider that the average car lease term in the US is 36 months, the average residual percentage for such leases is around 50 percent but you may see deals in the low 40s or up to 65 percent.

As a rule, used cars available for lease from dealerships will be certified pre-owned (CPO) vehicles that are less than 4 years old and with fewer than 48,000 miles on the odometer. Used-car leases follow the same basic structure as new leases.

55%-65% is considered a 'good' residual value for a 36-month car lease (Source).

If we consider that the average car lease term in the US is 36 months, the average residual percentage for such leases is around 50 percent but you may see deals in the low 40s or up to 65 percent.

A high residual value on the car could also help you get a better interest rate. A higher residual value means you'd have lower monthly payments because there would be less depreciation on the vehicle. Since interest is applied to your monthly payment, a lower monthly payment would equate to reduced interest charges.