How to Figure the Residuals for a Lease

The term "lease residual value" describes a car's bank-determined future market value or purchase price at the end of a lease term. The residual value, expressed as a decimal, is a percentage of the car's sticker price, even if you negotiate a lower price or provide a down payment. Exact residual percentages often change monthly and differ by vehicle type and lease term, such as the vehicle's model level, mileage allowance and the length of the lease. These factors affect depreciation and future value.

Instructions

1

Calculate the leased vehicle's sticker price. Obtain the car's sticker price by searching a dealer's inventory online or in person. Visit the manufacturer's website to obtain the cost of its vehicles with or without available options and features.

2

Choose the terms of your lease by visiting the dealer or manufacture's website, where you can find term options. Mileage allowances vary from 10,000 to 15,000 miles per year and lease terms often vary from 24 to 48 months.

3

Contact a dealership and ask a salesperson or manager for the car's residual value. Supply the vehicle type and lease terms you chose. If you aren't sure where to find a dealer in your area, use the "locate a dealer" function from the manufacturer's website.

4

Multiply the vehicle's sticker price by the residual value. For example, if the vehicle's sticker price is $20,000 and the residual is .63 percent, your residual value is $12,600.