Given a passage and a query based on the passage, generate an unambiguous, concise and simple answer to the query from information in the passage. Note that the answer may not be present in exact form.

That's because you can get better financing on a car that holds its value, or lease it at a lower rate, or finance a high-residual-value lease or car loan at a cheaper rate, or just get more value out of it as a trade-in when you decide to get rid of it. Real world leases examined with tutorials on how monthly payments are calculated, Excel spreadsheets, how to lease, lookup residual values, dealer cost, dealer invoice, car prices 10. Divide the depreciation amount by number of months in your lease. This will be your base payment. $6,890/36 = $191.39: 12. Add the adjusted capitalized cost and the residual value. Take the sum and multiply it by money factor. This is your monthly rent charge. ($20,000 + $13,110) x 0.00125 = $41.39: 13. Add the rent charge to your base payment to get your pretax lease payment $191.39 + $41.39 = $232.78: 14. This car will have a residual value of 57 percent and a money factor of 0.00125. We will have a $1,700 down payment and the car will have a $500 rebate. Assume we've negotiated a sale price of $21,000 (before the rebate was applied) and will have $1,200 in various fees. For this example, we will not have a trade-in. By definition, a lease refers to the contractual agreement or contract itself, while rent is the periodic payment for the use of an asset. Residual Value. Residual value, sometimes called salvage value, is an estimate of how much an asset will be worth at the end of its lease. As an example, a car worth $20,000 being leased for 3 years can have a residual value of $10,000 when the lease ends. For most assets, the longer the lease period, the lower the residual value. Residual value is also often used to refer to the value of an asset after depreciation. For more information or to do calculations involving depreciation, use the Depreciation Calculator. Calculating Lease Payment. Bimmer America gives you the most efficient and accurate BMW lease calculator formula on the web. We take into account MSPR, Sale Price, Net Capitalized Cost, Residual Value, BMW Incentives, Depreciation, Money Factor, Terms, Finance Charge, and offers through BMW financial. We also provide a convenient auto lease calculator (payment calculator), and CULA program policies, forms and documents. Can't find the residual you are looking for? If you do not find your residual here, it means that CULA does not have it yet. The car lease residual value is the dollar amount that you can purchase the vehicle for at the end of the lease. When a lease ends, you can either return the vehicle to the dealership or you can purchase it for a set amount. This amount is referred to as the residual value. The whole reason you got that zero-down (or low-money-down) rate and sweet monthly payment plan was because of the car's high residual value, which in theory would allow the dealer to get that dough back out of the car by selling it through his CPO program after your lease ended. The depreciation fee portion of your payment simply pays the leasing company for the loss in value of its car, spread over the lease term (number of months), based on the miles you intend to drive and the time you intend to keep the car. You pay off an equal portion of the total expected depreciation each month. Query: how is the residual value calculated on a lease?
The car lease residual value is the dollar amount that you can purchase the vehicle for at the end of the lease. When a lease ends, you can either return the vehicle to the dealership or you can purchase it for a set amount. This amount is referred to as the residual value.