Typically estimated based on the present value of the after-tax cash flows expected to be earned after the forecast period.
Future resale value assigned to an car.
Residual value of an asset is its estimated net scrap, salvage, or trade-in value as of the estimated date of disposal.
The value of property or assets remaining after e.g. repayment of a loan, or at the end of a lease agreement.
(Planed U/C Value) - The actual value of the lease vehicle at lease termination.
Lessor's expected fair market value of leased equipment at the conclusion of the lease term.
The value of a capitalized asset at the end of its useful life.
A conservative estimate of predicted future value of a vehicle at the end of a lease expressed as percentage and published for use in preparing leases. A higher residual value will lower the monthly payment. However, the vehicle must be resalable at the residual amount or the lessor will lose money. Conversely, adjusting the residual too low will increase the monthly payment and may make the lease payment unattractive. Adjustments to residual may be made for excess mileage or wear and tear.
The amount your car leasing company estimates your car will be worth at the end of your car lease, generally defined as a percentage of MSRP.
The projected value of a vehicle at the end of a lease. This number is not negotiable. This value will vary according to the lease terms, mileage allowance and the vehicle's make and model. Vehicles that tend to have a high resale value will also have higher residual values, which typically lead to lower lease payments.
The remaining value of a leased auto at the end of the lease term. Also known as book value.
"The estimated net scrap, salvage, or trade-in value of a tangible asset at the estimated date of disposal. Also called salvage value or disposal value."
The predicted value of the car at the end of the lease. You agree on this value before the lease is signed. It's what you would pay if you decide to buy the car when the lease is up. It's often expressed as a percentage of MSRP.
The estimated value of the assets of the fund, net of fees and carried interest.
the prospective value as of the end of the discrete projection period in a discounted benefit streams model.
The original estimate of the wholesale value of the leased vehicle at scheduled lease maturity. This value will vary depended on miles contracted in lease. You may or may not be able to purchase the vehicle at lease end for residual value because some leasing companies charge an additional Purchase Option Fee.
a projection of a vehicle's worth at the end of a lease, typically three years
The anticipated market value of the goods at lease maturity. Lessors carefully project the residual based on previous experience with that particular product and anticipated economic factors. This amount is reached by amortizing the capitalized cost by a portion of each monthly rental over the life of the lease.
The end of term value of the vehicle established at the beginning of the lease and used in calculating your base monthly payment. This value may be determined, whole or in part, by using residual value guidebooks (independently published value guides).
The projected market value of the car at the end of the lease, used to determine the cost of the lease at the time of negotiation.
The estimated market value of an asset at the end of the period being considered.
The amount for which the car can be sold at the end of the contract (including VAT).
This is the bank's prediction of what the car will be worth at the end of the lease term. The residual is the portion of the car that you do not pay for. The best way to get the lowest lease payment is to find a bank that has the highest residual value and the lowest money factor.
Done at the inception of the lease, it is a forecast of what the vehicle's value will be at the end of the lease term. May vary from the realized value.
How much leasing companies have estimated that the car will be worth after your lease is up. The residual value affects the amount of your monthly payment. Dealers have books with charts estimating the residual value, which is usually shown as a percentage of the sticker price (MSRP), and determined when the car is new. The higher the residual value, the less you will pay each month to lease your car. (See also depreciation.)
The value of a leased asset at the conclusion of the lease.
liquidation or sale value - the value of the firm at the end of the forecast period. Residual value depends on a careful assessment of the competitive position of the business at the end of the forecast period. (Alternative method for defining residual value using the perpetuity method: "Residual Value" = "Perpetuity Cash Flow" / "Cost of Capital") [Source: A. Rappaport
The amount a Fixed Asset is sold for at the end of its useful life.
In appraising personal property, a minimum value—below which no further depreciation is allowed so long as the property is either still in use or capable of use. The residual value is expressed in most cases as a percentage of cost. Residual values should reflect the remaining fair market value. In manufacturing or production machinery and equipment, the residual fair market value, utilizing a going concern concept, will reflect not only the value of an individual item as may be reflected by the used equipment market, but also the value added for freight, taxes and installation.
The estimate of the wholesale value of the leased vehicle at scheduled lease maturity. This value will vary depended on miles contracted in the lease. This value is often the amount you may opt to pay to purchase the vehicle and the end of the lease.
Predicted value of the auto at the end of the lease term including a certain mileage and normal wear and tear, established at the beginning of the lease term. The residual value is deducted from the adjusted capitalized cost to determine the depreciation and any amortized amounts. It is an estimate that may be determined, in part, by using residual value guidebooks. The residual value may be higher or lower than the realized value at the scheduled end of the lease. The higher the residual value compared to the cap cost, the lower your lease payments will be. Residuals fall most rapidly in the first 12 months, for some cars 50% or more, and they fall less rapidly after 24 months. Therefore short-term leases are more expensive than longer-term leases.
The value of leased equipment at the conclusion of the lease term. (Note that the lessor/owner is not required to "book" any residual for financial accounting purposes.)
The residual value refers to the actual or calculated value of the leasing object after expiration or upon premature termination of the leasing contract.
This is also known as the 'guaranteed minimum future value'. Anticipated value of the car at the end of the finance agreement. Only applicable to PCPs. (Please see above.)
The estimated market value of a car at the end of its lease. The higher the residual value, the lower the monthly payment. A high residual is the most advantageous in a closed-end lease. Be careful of residuals that seem too low - this means that you pay higher lease payments and if you decide not to buy the car out, the Lessor profits from a car that has a higher market value than residual.
The net market value or recoverable value which is (or expected to be) realised from the disposal of an asset at the end of its life.
The estimated worth of a vehicle when it is brought back after the lease expires.
The estimated recoverable cost of a depreciable asset as of the time of its removal from service.
The actual dollar value of a vehicle deferred to the end of the lease. It is used with cap cost to determine a customer’s monthly lease payments. It is not necessarily the same amount as the "purchase option."
The estimated price that a tangible asset would be worth at resale.
the value of your used car taking into account depreciation, condition and mileage.
The end-of-term value of the vehicle established at the beginning of the lease and used in calculating your base monthly payment. The residual value is deducted from the adjusted capitalized cost to determine the depreciation and any amortized amounts. The residual value may be higher or lower than the realized value at the scheduled end of the lease.
A term used to describe the estimated worth of an automobile at the end of a lease term. The residual value is used to calculate what a base monthly lease payment will be.
The projected value of the vehicle at lease end that is used in calculating the monthly payment.
The value leasing companies estimated the car will be worth at lease end, expressed as % MSRP. The residual value affects the amount of your monthly payment. Dealers have books estimating the residual value and the higher the residual value, the less you will pay each month to lease your car. You may get lucky and it will be lower than market value when the lease is up. You can then buy and sell the car, trade it in for something else, or just walk away.
The anticipated value of an asset (e.g. a car) at the end of a finance contract.
The estimated wholesale market value of the equipment at the conclusion of the lease.
The lease-end value of the vehicle set at lease inception by the lessor. It's usually calculated as a percentage of the MSRP. This is used as a component of the payment calculation.
This is the value of the vehicle at the end of the lease. It is used in calculating the base monthly payment. This value is usually non- negotiable and is based on a percentage of the MSRP as calculated by industry guidebooks which may vary between different leasing companies. Sometimes leasing companies keep this number a little high because the higher the residual, the lower your monthly payment and the more attractive and affordable the deal. But, if you plan to purchase the vehicle at end of the lease, the higher residual would generally make the purchase price higher.
The value of an investment at the end of the holding period. Also known as terminal value.
The value of an asset at the conclusion of a lease.
The anticipated market value for a vehicle at the end of the repayment term, based upon the predicted mileage.
The estimated wholesale value of a leased vehicle at the end of the lease. It is used to determine your monthly payment.
The car’s wholesale value at the end of the lease, as projected at the beginning by the lessor Read more
The value of leased property at the end of its lease term.
The book value that the lessor depreciates a piece of equipment down to during the lease term, typically based on an estimate of the future value, less a safety margin.
The residual value of an asset is the expected proceeds from the sale of the asset, net of the costs of sale, at the end of its estimated useful life. Residual value is used for computing the straight-line method and diminishing-balance method of depreciation, and also for inclusion in the final year's cash inflow in a discounted cash flow appraisal.
The projected market value of an asset at the end of a financing term.
The value of the equipment at the end of the lease term.
The predicted value of a vehicle at the end of a lease term.
The estimated fair value of an intangible asset at the end of its useful life to the entity, less any disposal costs.
This is the leasing company's prediction of what the car will be worth at the end of the lease. The residual value is also important because it affects your monthly payment. The higher the residual, the lower your monthly payments.
This is the original estimate of a vehicle's wholesale value at the scheduled end of the lease. The value will vary depending on the mileage allowance specified in the lease. The lessee can purchase the vehicle at the end of the lease for the residual value amount plus any applicable purchase option fee.
A future resale value assigned to an automobile.
In business interruption insurance expense incurred by the insured to minimise a loss may result in advantage continuing to the insured after the indemnity period covered by the policy. The value of this advantage is called the residual value.
Portion of an asset's cost expected to be recovered through sale or trade-in of the asset at the end of its useful life
the value as of the end of the discrete projection period in a discounted future earnings model.
The value, either actual or expected, of leased equipment at the end, or termination, of the lease.
Usually refers to the value of a lessor's property at the time the lease expires.
The remaining dollar value of a leased auto at the end of the lease term. Residual amount is synonymous with book value, which is the remaining value of a fixed asset after deducting depreciation expense.
The projected market value of a vehicle at the end of a lease. Also known as the lease-end value, it is established at the time of lease inception and is used to calculate your monthly payment. Residual values will vary depending upon the model you choose, the lessor, the amount of miles you anticipate driving, and particular promotions being offered on that model. In virtually all cases, the lessor - not the dealer - sets the residual value.
The value of the vehicle at the end of the lease used in calculating the monthly payment. Also referred to as Lease-End Value.
The resale value of the asset at the end of the lease.
The estimated value of the vehicle at lease end as established at the beginning of the lease. Deducted from the adjusted capitalized cost to determine the depreciation amount used in calculating your base monthly payment.
Most leased equipment has a remaining or resale value at the end of the original lease term. The remaining value is referred to as the Residual.
The amount agreed upon to represent the value of the car at the termination of a lease, usually determined by the amount of depreciation in the car's value predicted during the term of the lease.
The lease-end value of the vehicle, established at the beginning of the lease. This value is used in determining the monthly lease payment. The residual value is also used to determine the depreciation and other amortized amounts that go into determining the monthly lease payment.
The value for which an asset or equipment can be disposed of in the open market once it has been released from a leasing agreement. It can also mean the written-down book value of the equipment which would usually be less than its market value.
The value of the vehicle at the end of a lease agreement which is agreed upon at the time of signing.
For lease contracts, the residual value is an imputed amount used for determining the lease payments. It is the amount on which the lessee does not make any lease payments during the term of a contract. Lease contracts with residual value are called partial amortization contracts.
The stated residual value is usually the same as the end-of-lease purchase price. The higher the stated residual value of the car, the lower your monthly payments. Stated residual values are often higher or lower than the expected residual value for a car, the lessor can raise or lower the monthly payments and the net interest rate for the lease. Stated residual value also determines whether you should buy the vehicle at the end of the lease. If at the end of a lease, the vehicle's market value is less than the stated residual value, the lessee would be prudent not to purchase the car. On the other hand, if the actual market value were greater than the predetermined residual, then the lessee could buy the car, sell it, and pocket the difference.
Residual value is one of the constituents of a leasing calculus or operation. It describes the future value of a good in terms of percentage of depreciation of its initial value.