The residual valueThe residual value is present in... More is present in almost all leasing transactions. For operational leasing and open-end financial leasingA leasing contract, under which, the... More, the residual valueThe residual value is present in... More is compulsory.
The residual valueThe residual value is present in... More represents a forcast of the market value of the leasing assetLease asset is the subject of... More at the end of the leasing term. Simply said – it is the price at which the returned leasing assetLease asset is the subject of... More may be remarketed (the above types of leasing stipulate that the leasing assetLease asset is the subject of... More must be returned to the lessorOne of the parties to the... More). “The forecast” is done by the lessorOne of the parties to the... More and is used to determine the amount of the monthly lease installments. The greater the residual valueThe residual value is present in... More, the smaller the monthly installments.
It may also be said that the residual valueThe residual value is present in... More is the part of the purchase price which will never be paid by the lesseeThe lessee is the user of... More.
As the lessorOne of the parties to the... More determines the residual valueThe residual value is present in... More, it is logical, that more often than not, they will be more conservative by reducing the residual valueThe residual value is present in... More (e.g. “a 30% residual valueThe residual value is present in... More for leasing of a car for 3 years”). Hence the residual valueThe residual value is present in... More may be the object of negotiation between the lessorOne of the parties to the... More and the lesseeThe lessee is the user of... More.
The only leasing transactions without a residual valueThe residual value is present in... More are the full-pay-out financial leasingA leasing contract, under which, the... More contracts where the residual valueThe residual value is present in... More is either zero or an insignificant amount.
