The projected market value of the vehicle set at lease inception by the lessor. It's usually calculated as a percentage of the MSRP and used as a component of the payment calculation. Added to the price of the car and is usually based on either the purchase price or on the monthly lease payment. The security deposit is generally refundable at lease end, provided there are no excess miles, excess wear and tear charges or unpaid lease payments. Leases that are financed or promoted by vehicle manufacturers.
Subvented leases utilize very low interest rates or artificially inflated residual values.
Automobile Consumer Services, Inc.