Question: how much does a car depreciate after a lease?
Answer: By the end of a three year lease the vehicle is now worth $17,000 – this is the Residual Value. The Selling Price ($30,000) minus the Residual Value ($17,000) leaves $13,000 – this is the Depreciation. Your lease payments are mostly to cover the $13,000 in Depreciation on a monthly basis over the term of the lease.