2017 honda crv touring 36 mo no money down 12k year in south carolina . MF and residual

csn1285csn1285 Member Posts: 13
edited November 2017 in Honda
2017 Honda crv touring 36 mo no money down 12k year in south carolina. excellant credit
MF and residual
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  • csn1285csn1285 Member Posts: 13
    Thanks..One more question. when I do the math adding the residual value to the adjusted capital cost and divide by the MF it seems the higher the residual value the higher the rent charge. Is that right or am I doing something wrong. I thought it is better to have a higher residual value
  • kyfdxkyfdx Moderator Posts: 191,803
    csn1285 said:

    Thanks..One more question. when I do the math adding the residual value to the adjusted capital cost and divide by the MF it seems the higher the residual value the higher the rent charge. Is that right or am I doing something wrong. I thought it is better to have a higher residual value

    When the residual is higher, the rent charge will be slightly higher. But, the depreciation is much lower.

    For instance, if the residual was 2% higher on a $30K MSRP vehicle with a money factor of .00200, the extra 2% higher residual ($600) would cut the depreciation by $16.67 per month.
    But, the rent charge on that extra $600 is only $1.20/mo. Net gain of $15.47/mo.

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