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Depreciation and Residual Value Guide

Photo of Donna By Donna
15th April 2021
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What is the difference between depreciation and residual value?

How does the residual value of a vehicle affect my monthly lease rentals?

The residual value of a vehicle is one of the most important aspects when calculating the terms of a lease, as it affects the monthly rentals you will pay.

Mark Smith - Director of Nationwide Vehicle Contracts

How is the residual value calculated?

Factors that influence depreciation and residual value:

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Vehicle age

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Fuel efficiency

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Vehicle mileage

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Condition of the vehicle

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Demand and supply

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New model releases

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Popularity

How can I find out the residual value of a car?

Original Value - Depreciated Value = Estimated Residual Value

How to minimise depreciation

How to choose the right car

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Choose colours carefully

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Choose a fuel-efficient model

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Choose a new and popular model

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Haggle when you purchase

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Look after the vehicle

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Reduce unnecessary journeys

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Maintain the vehicle

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Deal with repairs quickly

Guide Information

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About the Author: Donna Kelly

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