Most lease residual value guidebooks for new vehicles use the percentage method for estimating residual values. Example Most lease residual value guidebooks for used vehicles use the dollar method for estimating residual values. Example

You may want to consult the reference librarian at your local library. If you use a guidebook produced for the leasing industry, there may also be a charge for the printed or Internet information.

When you purchase a vehicle, its future value is unknown. The future value could turn out to be more or less than the residual value would have been had you leased the vehicle. If the actual market value of the purchased vehicle turns out to be more than the residual value would have been, you will have gained money relative to a lease because you will have paid for less depreciation than the lease would have required. However, if you lease the vehicle and, at the end of the lease, purchase the vehicle for the residual value stated in the lease, you will have paid the same amount of depreciation you would have paid had you originally purchased the vehicle. Example

If, on the other hand, the actual market value of the vehicle you purchased turns out to be less than the residual value would have been, you will have lost money because you will have paid more depreciation than the lease would have required. Example

If you sell or trade in the vehicle you purchase, you may want to recondition the vehicle, advertise it for sale, and obtain different sale or trade-in offers (see the section Vehicle Return).

When you own the vehicle, you keep any amount by which the resale value exceeds the loan payoff amount. You may get more or less in trade for your purchased vehicle than the residual value that would have been established for the vehicle if you had leased it.