CARRUSLiNK
    Glossary

    Residual value

    Residual value is the value a car is expected to have when the leasing contract ends. It is set at contract signing and, together with the purchase price, determines the monthly payment. Set it too high and a loss appears at return; set it too low and the payment is uncompetitive.

    Residual value is the single figure with the largest impact on whether a leasing portfolio makes money. It is also a guess about a used-car market three years out.

    Continuous follow-up therefore matters more than initial precision: if mileage and condition are tracked along the way, the deviation can be handled before the car comes back.

    At the end the real outcome is decided by three things: kilometres driven, the condition of the car, and how quickly it can be sold.

    In CARRUSLiNK

    CARRUSLiNK keeps residual value, mileage and expiry on one record so deviations surface before the return.