Loans

Car Loans, Leasing and Buying

Why do manufacturers manipulate the residual price?

Sometimes, in order to reduce the inventory of slow-selling cars, manufacturers may artificially inflate the actual residual value of the car in order to make your monthly payments less. Since you are using only a small portion of the car’s inflated value during the lease period, your monthly payments would be lower. In the end, however, you may end up paying much more to buy the car after the lease period ends than purchasing a used car of the same model, year, and type at that same time.



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