Residual Value

Definition

• The value of the vehicle at the end of a lease agreement which is agreed upon at the time of signing.

Synonyms
salvage value, remaining value, residual

Related Terms and Acronyms

• Actual Cash Value (ACV) — Acronym,
  • The replacement cost of an insured asset with depreciation accounted for.
  • The amount of money that a broker or dealer has invested in the purchase and repair of a used vehicle.
• Purchase Option — Definition,
  • An agreement where a portion of monthly rent can be credited toward the purchase of a property.
  • The portion of a vehicle lease that determines how much a lessee pays the lessor at the end of the lease to buy the vehicle. The price is usually the residual value.