Lease a BMW rather than a Pontiac for the same monthly payment, simply by comparing relative residua

Here are the definitions to help evaluate vehicle residual values

Here is where the magic is Higher quality cars, such as a BMW or Mercedes or Lexus, will always have a higher relative vehicle residual value than a Chevy or Pontiac or Dodge. That means that although the interest paid on the higher quality vehicle residual value is more than that paid on the lower quality car, the monthly payment paid on the depreciation is a lot less, so that the sum of the two on a BMW can be the same as the sum (the lease payment) on a lesser quality car.

Use the resource box at the end of the article to see an actual example of two vehicles having the same lease payment but differing in price by several thousand dollars.

How to exploit this anomaly in vehicle residual values in a Lease calculation

The next step is to actually visit the second choice dealer showroom and see if Car B meets your needs, such as comfort, room, and any other requirements that led you to pick vehicle A in the first place. Ignore its price, because you're only concerned about its monthly lease payment.

Vans, SUV's and Light trucks