Residual Value

Definition

  • The value of the vehicle at the end of a lease agreement which is agreed upon at the time of signing.

Synonyms
salvage value, remaining value, residual

Related Terms and Acronyms

  • Actual Cash Value (ACV) Acronym,
    • The replacement cost of an insured asset with depreciation accounted for.
    • The amount of money that a broker or dealer has invested in the purchase and repair of a used vehicle.
  • Purchase Option Definition,
    • An agreement where a portion of monthly rent can be credited toward the purchase of a property.
    • The portion of a vehicle lease that determines how much a lessee pays the lessor at the end of the lease to buy the vehicle. The price is usually the residual value.
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