Quote:
Originally Posted by Neptune7
Roughly how much per month does a difference in residual between 61% and 51% make on the lease payment? Let's just assume 5k down for the example.
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A simple rule of thumb outside of any down is just to assume that one is paying that much more in depreciation or in this case 10%.
So if a 120k msrp car has 10% lower residual, you are rolling 12k plus interest plus tax on that gain in depreciation divided by the term into your payment if the other factors remain static like money factor sell rates.
This is a rough view of course since a lower residual over all yields a lower money factor dollar amount since rent charge = net cap plus residual times money factor.