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Residual Value

Also known as Retained Value.

The amount a car is worth after a given period of time on the road. For example, if a vehicle has a residual value of 40% over three years, then this means that after three years, 60% of the car's original value will have disappeared. This loss in value is usually the single biggest expense in running a car.

See also Depreciation.

Repayment Period      Retail Motor Industry Federation (RMIF)



 
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