Quote:
Originally Posted by dsmclone
Quote:
Originally Posted by BEM-S4
It's pretty straight forward - if the residual is greater than market value, you did good for the duration of the lease. If the residual is less than market value you overpaid while you were driving the car.
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Is it really that straightforward? For me, it's what costs me less over a time frame. |
It is and it isn't. If you turn car in you can easily see if you did well or not. When you buy it the math starts to get more complicated.
Say your residual is way under market value, so you overpaid for your lease. If you buy the car cheaply now and keep it, you come out ok. However if you got 10% off from dealer and your residual is 50%, you really only got 5% off from dealer.
The way to "win" is get a cheap lease with high residual, get dealer to play ball and buy out below residual and sell back to you.