Pretty much what it sounds like. Residual. The left-over. The part at the end.

The residual value is both the future forecasted market value and the number used to calculate how much you’re making payments on (see How Does a Lease Work).

Basically, it’s what we think the truck will sell for at the end of the lease term, all things considered (future market, vehicle usage, anticipated mileage… )

The residual functions as a pre-trade-in (we were looking for a four-hyphen word and couldn’t find one). Your lease payments are based on financing the difference between the vehicle cost and the residual value. The higher the residual value, the lower the payment.

Worried that you can’t drive as many miles as you need to? Check this out.