[rick112]

My dealer told me the residual value on the Sky is around 35%. He seemed to be saying that was a bad thing. I take it that low residual is a bad thing. Why is the residual value on the Sky so low?

 

[Kustomkaps]

The residual value is the amount a company/person expects to be able to sell a fixed asset for at the end of its useful life. Like a salvage value. When you have used the Sky up in say 5 years, it should be worth about $8500 to sell.

The value will be determined upon how well the Sky holds up to use and how many are still in demand when you sell it. Sell it this year, you will gain $2k to $4k from the purchase price due to demand.

 

[deluke]

My dealer told me the residual value on the Sky is around 35%. He seemed to be saying that was a bad thing. I take it that low residual is a bad thing. Why is the residual value on the Sky so low?

The residual value on the Solstice is I think 52% which is great after 3 years, closest to the Viper. ( Viper is I believe 56 %)

I would think the Sky would be right in lines with the Solstice. Go to the Solstice Forum and search for the threads for residual value this was posted in many auto articles and also by the leasing companys.

 

[SaturnSkyDude]

The residual value depends on the term of the lease. The longer the lease term, the lower the residual value as a car depreciates as it ages and acquires additional mileage. That number sounds like a 60 mo lease residual value. Also, the bank determines the residual value and sometimes different banks have different residual values. A residual value is a "guestimate" on what the future value of the car will be worth at the end of the lease based on the mileage and age of the vehicle.

 

[bubblehead1965]

you guys should be careful...axel will blast you for talking about residual value, when I mentioned that a few days ago and said that I had decided to get my wife the bmw z4 and cancel the sky order. but if you were wondering after 3 years (lease) the z4 will retain 62% of its original value.

 

[SkyMan 08]

My dealer told me the residual value on the Sky is around 35%. He seemed to be saying that was a bad thing. I take it that low residual is a bad thing. Why is the residual value on the Sky so low?

I assume that is a 5 year lease, anyway they estimate the value of the car at the end of the lease and base your payments on that value, if it is higher than they estimate, you paid too much for your lease,and you would have been better off buying... if it is worth less then you paid less than you would have if you had bought the car yourself.
Leasing is a Gamble, and beware of the fine print that adds penalties on if you end your lease too soon or if they determine if there has been abuse, or the additional cost of going over your mile limits...

 

[CdnSkyGuy]

Low residuals are bad because your payments will be higher. Good in that your buyout at the end (should you choose to keep the vehicle) will be low.