Quote:
Originally Posted by M6-Coupe
How this is possible??? it's kind of weird!! 39 months has better residual?
it means after 36 months /10K the residual is 57% and 3 months later is 58%? So if the customer returns the car after 36 months, then dealer keeps the car in lot for 3 months to increase the value??I know they both have the same 10K, but usually car loses the value by time more than by mileage right?  |
Look, granted I'm in the medical field, certainly not a finance geek and I don't understand the nuances of residual value, money factor and the rest. But, I do have common sense and I agree with your point, this makes no sense to me. I also don't understand how a 36 mos lease residual can drop 7%! Unless, they think the market will be flooded after a slew of 2012 car leases/finances are up. Hopefully, someone here that knows how the exact numbers are arrived at will chime in.