One of the terms that you may hear when you sign a GMC lease here at Peruzzi Buick GMC is residual value. Leasing is an attractive option to many buyers, as it offers lower monthly payments and the ability to drive a new GMC model every few years. When you sign a lease, it is important to understand all of its terms, which include residual value. Our team of GMC finance experts will explore what residual value is and why it matters.
Understanding Residual Value
Residual value is the estimated value of a vehicle at the end of the lease term. It’s one of the key factors that goes into determining your monthly lease payments. Put simply, the higher the residual value, the lower your monthly payments are likely to be. This is due to the fact that you are only financing the depreciation of the vehicle during the lease terms, rather than the vehicle’s entire value.
What Affects the Residual Value?
Several factors can affect the residual value of a GMC vehicle, including its make and model, anticipated depreciation rate, and market demand. Generally, vehicles with strong reliability, desirability, and high resale value, such as Buick and GMC vehicles, tend to have higher residual values.
Why is Understanding Residual Value Important?
Understanding the residual value of your GMC lease is important for the following reasons:
- Lower Monthly Payment: A higher residual value typically results in lower monthly payments.
- Lease Buyout: If you decide to purchase your leased GMC vehicle at the end of your lease term, the residual value represents the amount you’ll need to pay to buy out the lease.
Start a GMC Lease Today in Fairless Hills, PA
Now that you understand residual value, visit Peruzzi Buick GMC to take a look at the GMC models that we have available for leasing. Schedule your test drive today!
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