One of the most complex concepts consumers will encounter when trying to decide if buying or leasing is the best option for them, is “residual.”
What is residual value?
This number is the projected market value of a vehicle at a given point in time in the future.
So, when it comes to leasing, the residual value is used to help calculate how much a vehicle will depreciate (lose value) during the lease period…and thus how much the consumer should pay every month to lease the vehicle now.