When you sign the lease, the dealer sets a "residual value." This is the pre-determined price you can buy the car for at the end of the lease.
If you went over your mileage limit or have some minor "wear and tear" scratches, buying the car at the end of the lease usually wipes those extra charges away. Things to Consider
You know exactly what the car will cost years in advance. If the market value of the car ends up being higher than the residual value, you’re getting a bargain.
You get several years to see if the car fits your lifestyle, has mechanical issues, or if you truly enjoy driving it before committing to a 10-year relationship.
When you sign the lease, the dealer sets a "residual value." This is the pre-determined price you can buy the car for at the end of the lease.
If you went over your mileage limit or have some minor "wear and tear" scratches, buying the car at the end of the lease usually wipes those extra charges away. Things to Consider
You know exactly what the car will cost years in advance. If the market value of the car ends up being higher than the residual value, you’re getting a bargain.
You get several years to see if the car fits your lifestyle, has mechanical issues, or if you truly enjoy driving it before committing to a 10-year relationship.