If you're thinking about leasing a new Ford at Prime Ford Auburn, one of the terms you're likely to encounter is residual value. What are residual values? Residual value is a vehicle's estimated value at the end of a lease term. How does this affect your lease? Residual value comes into play when determining how much it would cost to purchase your vehicle at lease-end. It also helps to determine your monthly payments.

Here's how it breaks down:

Residual Values and Your Monthly Payments

When you lease a new Ford, you pay its depreciation. When you subtract the calculated depreciation of a vehicle (the part you pay for each month) from the car's original value, what you're left with is the original value. So, understanding residual value is a key part of figuring out how much you pay per month to lease that new Ford Escape or Ford F-150 near Worcester.

Residual Values and Lease-End Purchases

What happens if you decide that the vehicle you leased is perfect for your Charlton adventures and you're not ready to let it go? You have the option to purchase your vehicle at lease-end and keep the fun going. How do we figure out what you pay for it? Well, you've already paid the depreciation as part of your monthly lease payments, so all you need to take care of is what's left – the residual value – if you decide that your lease term isn't enough time with your vehicle.

Find Out More

Have any questions? Our Ford financing experts are ready to answer them! Connect with us here at our Ford dealership serving Holden and Spencer today to learn more about residual values and how they affect your leasing experience. We look forward to talking financing with you!

Categories: Finance, New Inventory