#book value of a car
Residual Value on a Car Lease
By Jean Murray. US Business Law / Taxes Expert
Jean Murray has the education and experience to help you become an expert in your small business, and to provide you with information about business legal and tax issues. With an MBA and a PhD in entrepreneurship, she brings almost 30 years of experience and knowledge to these important business subjects.
DISCLAIMER: I am not a CPA or attorney, and nothing on this site in articles, emails, blog posts, or other communications is intended to be tax or legal advice. The purpose of this site is to provide general information to readers. No claim is made regarding the accuracy or legal status of information on this site. Federal, state, and local laws and regulations change, and every business situation is unique. Readers should not take action on any tax or legal matter without reviewing options with a tax advisor or attorney.
The residual value is a term used in car leases. It describes the value of the car at the end of the lease. The term residual value is also used to describe the amount a business expects to sell an asset for at the end of its useful life.
The residual value is a function of the amount and rate of depreciation on the car or other business asset. The more the asset depreciates, the less its residual value will be at the end of the lease.