Quote:
Originally Posted by illirep
Aren't residuals on a stand alone basis nearly useless? When considering the residual without the money factor, you are only working with half of the equation.
In my experience, with higher residuals, they do less incentives on the money factors. And when residuals come down toward the end of a model year, they incentivize the money factors to balance it.
Perhaps I'm missing something!?
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You do need the MF combined with the residual to figure out the exact lease amount but knowing the residual isn't really useless on its own.