Originally Posted by rjc32000
I'm a novice when it comes to leasing, but don't you want a high residual? As I understand it, the residual is the projected value of the car at the end of the lease. In a lease, you are paying for the anticipated depreciation of the car during the lease term; if the residual value of the car is high, then the anticipated depreciation of the vehicle is lowered, right? i.e., all things being equal, your lease payments will be lower on a car with a higher residual. Am I missing something?
Yes, you want a high residual and a low money factor. The poster was saying that the residual being used in the calculation was incorrect as it was for the 10k/year mileage not 12k/year which is 2% lower at 61% residual.