Blog

Leasing a new car, truck, or SUV is like renting a vehicle—but what is residual value? Residual value is the remaining value after depreciation at the end of your lease term. In other words, it is the amount you can purchase the vehicle when your lease is up. When you lease a new vehicle, you end up paying for the difference in original value and residual value. Think of it this way: the higher the residual value, the lower your monthly payments will be.

Leasing a car is different than financing one in many ways. One of the main reasons is when you lease; you are only paying for a portion of the vehicle's life. With this in mind, most states do charge sales tax on every lease payment.

APR standard for Annual Percentage Rate. The APR is the cost you pay each year to borrow money. This includes fees expressed as a percentage. If you are purchasing a vehicle, you will want to try to find a low APR. Having a lower interest rate means you will save with interest, and you will also pay less every month—but interest rates and APR aren't the same.