Residual value is an estimate of your leased car’s value at the end of your Toyota lease. Learn more about how residual value is and how it’s calculated, then contact Hall Toyota Virginia Beach to apply for leasing or financing!
What Is Residual Value?
Your leased car loses value over the term of your lease, due to the normal wear and tear of daily driving. Your lessor estimates how much the car will be worth at the end of the lease, assuming that you will stay within the mileage caps and other limits to preserve the car. This residual value is calculated at the beginning of your term and will be stated on your lease paperwork.
Closed-End and Open-End Leases
If you have an open-end lease, at the end of your term, you will be responsible for any difference between the residual value calculated at the beginning of the lease and its actual value at the end. However, if you have a closed-end lease, the difference is the responsibility of the lessor. In that case, you can simply bring in your vehicle to end your lease.
Lease Buyouts
You may have the ability to buy your leased vehicle at the end of the term if you have a lease buyout option. In that case, the price you’ll pay will be based on the residual value. Buying at the end of your lease is an especially good idea if the residual value is lower than the market value of the car.
Start a Toyota Lease at Hall Toyota Virginia Beach
Leasing is a great way to get behind the wheel of the latest, greatest new Toyota cars. Visit Hall Toyota Virginia Beach to find out more about leasing and leasing terms, then take a test drive today!
