Therefore, the higher the residual-value percentage, the lower thepayment, and vice-versa. Cars that have good resale value have good (^)
residuals.
Typical residuals on a three-year lease are in the 50 to 60 percent range.Residual is a percentage of MSPR (sticker price), not cap cost. So the
more you knock off sticker in the negotiation, the better the payment, justlike a loan. Annual mileage affects the residual value as well; usually a
12,000-mile per year lease has a one to two percent higher residual—meaning a $10-$30 lower monthly payment.
MILEAGE
That leads to a critical issue on a lease: annual mileage. Many of thefrustrations people feel at lease end could have been addressed if they had (^)
been aware of their real mileage needs (and the fact that it can changeover the lifetime of the lease). Most of the trouble I see is with people who (^)
went to a dealership on their own and leased. The dealer got them focusedon payment , and since the lower the mileage, the less the payment, they
signed up for too few miles.
There’s nothing worse than a mileage penalty of thousands of dollars at theend of a contract. Lease companies typically offer 12,000- and 15,000-mile-
per-year contracts; high-end cars and trucks might have lower ones, like10,000 miles per year. A few, like BMW, offer the ability to adjust the
mileage during much of the lease’s term if your driving habits change.
barry
(Barry)
#1