ACV RESIDUALS

The lease lenders of most manufacturers will increase the residual values of the vehicles that they lease well beyond what the actual market value would be at the end of the lease term. They do this in order to lower the lease payments. The drawback of this procedure is that it does lock the lessee into the full lease term, and it eliminates any possibility of buying, selling, or trading the vehicle at the end of the lease term. Most people who enter into a lease do understand this. However, circumstances do change, and sometimes flexibility would be an advantage.

The Independent Lenders used by PrimeLease use a different approach. They use conservative Actual Cash Value (ACV) residuals, which, in most cases, are more than offset by low money factors. Depending on the credit bureau score and the lease term, our current money factors are as low as .00213 (5.1%). This way the monthly lease payments are competitive, but with the added advantage of not being locked into a potential Purchase Option higher than the actual market. If the situation at the end of the lease period is such that you might want to consider buying, selling, or trading the vehicle, these possibilities are feasible. It is not unusual to trade your car at the end of lease for your next vehicle, and take a profit. It also offers the possibility of trading out before the end of the lease, which cannot be done without a monetary penalty with enhanced residuals.