It may look like counterintuitive, though a car which has its worth surely is a better deal for the purchaser for the time unless you don’t decide on investment on to that car anymore and want to sell it. The reason behind that is you can obtain good financing on a car which has its worth, or invest it at a high-residual-value lease or loan for car at a lower rate, or just obtain more cost out of it as an exchange whenever you plan to get rid from it.
Some tips:
First: Don’t purchase that car when it’s at the closing of lease, this way you will get stuck on the price. The entire explanation you get that low-money-down value and attractive monthly imbursement plan was due to the car’s high residual value, which in assumption would let the dealer to obtain that cash back out through the car by selling it with the help of CPO program sooner when the lease will end. It’s not a good deal which will profit you by buying the car at the end of its lease. It’s a great deal to re – lease, purchase second-hand, or effort for a good CPO deal somewhere else.
Second: Residual value is not assurance for having low repairing and maintaining costs. It can be easily forgettable, while a number of people compare high residual value with quality. However as we have observe residual value has much more to does compare to that. Super class cars (luxury cars) may have their worth (which is based on the company and model), but component and repairs can be extremely costly—a detail that is invisible to some extent by the leasing scheme, as maintenance is finely covered. Purchase from a sole seller and the more -residual equation is a slightly a small of a certain expect.
Third: it doesn’t matter anything, be familiar with from where you are purchasing in the car life cycle.
For example: The existing 2013 Accord is the initial year of the ninth generation. Possibly you were presented an immense deal for Accord 2012, although that car is now achieving its value to some extent lower than in the initial year of a new generation of car. It is not necessary, for new model cars the initial years may face many issues. Still keep in mind about luxurious Accord, people will not focus on the issues more because they l want the latest brands and models.
