The Kelly Blue Book is the "Bible" of the Car Industry. The "Lease-end" Value is a projection of what the car will be worth "Wholesale" (not Retail) at the end of the "Term" This assumes you stay within the miles allowed for the Lease. Generally 10-15K per year.This also assumes the condition of the vehicle is in the "normal wear and tear" guidelines.
Actually, lease-end values are available in the ALG guide published monthly. ALG is The Bible for the lenders who do leasing or any other residual-based financing. Kelly Blue Book, NADA Bluebook and Blackbook are used principally to determine trade-in value, loan value or suggested retail. Kelly is used primarily in the western states but NADA bluebook is the standard for the central/southwest/eastern parts of the US. Bluebook value and " residual value " are not the same thing, so don't confuse the two-they are in no way related.
When entering a lease please know that there are 2 kinds of lease 1) open end (bad) 2) closed end (good) This is baced on Nebraska law and lease. As far as I know open ended leases are not offered any more but please watch for them. If you enter a closed end lease the price of the car is set at the dealership before you ever leave. The way we determan that price has to do with the residual this is "the amount that the leasing co. projects you will use of the car".I.E. you lease a Impala for $20000 the residual is 50% we take $10000 and put it away the other $10000 is taken times a lease factor(apr) and divided by term this will give you payment. Now your price in my lease is for the used car at full term is $10000 + a "fixed purchase price increment" at our dealership $500 + a $50 Doc Fee for a end price of $10550. YOU SHOULD KNOW THE PRICE BEFORE YOU SINE A LEASE!!There are opts. at the end of a lease like turn the car in,buy the car and keep it or buy the car and trade it.
No. You're not getting any bargains by buying the car at the end of a lease, rest assured of that.
A lease payment calculator is used to find out what an auto lease will really cost. It takes into account the MSRP, the negotiated price, the down payment, sales tax, length of lease, the end of lease car value, and new car lending rate, as well as the lease time.
In the end of the lease, you can purchase end up possessing the lease or perform a fair market price lease when in the finish of the term, you buy the equipment for the need for in those days.
Open End lease
The average cost of a corporate car lease is between 250 and 300 dollars. They usually will not allow a lease of a luxury car unless it is a high end company. In some case, a company car is one of your benefits and may be higher end.
A balloon payment refers to the last payement you make on a car that you got as a long term lease. At the end of the lease you can either make a balloon payment and buy the car, or you return the car.
No. Leasing is for suckers. A lease is no more than renting a vehicle with nothing to show for it at the end. Stay away from a lease. Buy what you can afford, and forget the lease.
A car lease can be thought of as a long-term car rental. If you choose to lease rather than buy, you will not own the car. You will simply be leasing it for a predetermined period of time. When you lease a car, you are not leasing it from the car dealer itself. You instead lease it from a leasing company, who in effect buys the car and rents it to you in exchange for your monthly payments. This leasing company can be the financial arm of large automakers (such as GM Finance or BMW Finance) or may be an independent leasing company of the dealer's choice. The dealer generally acts as an agent on behalf of the leasing company in negotiating the terms of the car lease. The most common type of car lease is called a "Closed End Lease". In this type of lease, you and the dealer agree on the length of time and interest rate at which you will lease the car, and also on the final value of the car at the end of lease (called the "residual value" of the car). When your lease is over, you can either turn your keys in or you can exercise the option to buy the car at the pre-agreed residual value. It should be worth noting, that an open-ended lease is practically unheard of these days. Any legitimate car dealer should be offering a closed-end lease.
If you give the car back to the car dealership before your lease has expired, then the lease is over. You stop paying the monthly payments. This is very common in people who want a low monthly payment, thus they get a long car lease and then end up trading back in the car for a new car before the lease has expired.
When you enter into a retail installment sales contract for the purchase of a vehicle, your down payment and your monthly payments go toward the total purchase price of your vehicle. When you have paid off the financing, you own your car. When you lease a vehicle, you make payments to use the vehicle over the term of your lease. However, you don't own your car. At the end of your lease, you return it to the lessor.
When leasing a vehicle it will have a residual value at the end of the lease. In the case of the EV1 it was such a horrific car it's residual value at lease end would be non existent. This car is one of the top 50 worst cars ever produced.