Learning About Estimated Residual Value in BC

Are you looking to purchase a new ride with Bannister Ford Penticton’s Easy Deal program? When buying a vehicle, you have a few options. You can pay for the car in full using cash or sign a finance or lease contract. However, there are a few things to consider.

Leasing is a popular option for cost-conscious shoppers since these contracts often have lower monthly fees. For example, when you lease a car or truck, you are only paying for the vehicle’s depreciation over the term (which, on average, is three years), and you can return the car at the end of the lease. But if you decide to keep the vehicle, you’ll have to pay the estimated residual value.

What is Estimated Residual Value?

The estimated residual value approximates how much the vehicle is worth at the end of the contract. This approximation is determined by the lender that holds the loan and is based on fair market value. If you cannot afford to pay the buyout in full, you can borrow this amount.

Are you curious about financing or leasing a vehicle? Our Easy Deal’s free online credit approval can help you make the best decision. Apply today!