Originally Posted by JCL

That is not the definition of residual. Residual value is what figure is used in the calculation for the value at the end of the lease. We don't have all the lease calculation variables for your example, but your calculation above is not correct. A closer calculation is (57,000-4000-(PM*36))= residual. The payment (PM) then has taxes added back onto it as well. There are other factors, but that is a starting point.

You can't use your (payment including tax) in the calculation. But if you could, using your numbers, your figures would show a residual of 33%, not 67%. Your total payments equal 67%.

Leases are often used to hide the true cost of a vehicle.