Part of your Jeep® lease is the residual value, an important part of your lease terms that every driver should know. Not only does it affect your monthly payment, it’s also essential to know if you plan to buy your car after the lease is up. The team at Brunswick Auto Mart reviews everything you need to know about residual value.
What Is Residual Value?
The residual value refers to how much your car is expected to be worth at the end of your lease. As every car depreciates in value once it leaves the lot, this number is in place to inform you of your car’s eventual worth. It’s determined by applying a specific percentage to the Manufacturer’s Suggested Retail Price.
What Does It Affect?
While your actual residual value is static, it does help determine your monthly lease payments. While monthly loan payments cover a vehicle’s total value, monthly lease payments cover the vehicle’s depreciation.
Does Residual Value Impact Buyout Price?
Yes! The residual value is the price that you’ll pay if you want to purchase the vehicle at the end of your lease (before any fees and penalties apply). The residual value won’t change over the course of your lease, although the actual value of the vehicle might, depending on its usage and upkeep. That’s why it’s important to check the residual value against an estimated value at the end of your lease.
Discuss Jeep® Lease Terms at Brunswick Auto Mart
Residual value is just one Jeep® lease term you need to know; our dealership can help you figure out the rest. Contact Brunswick Auto Mart today to learn more about leasing and financing.
Categories:
Finance