Hello, I was wondering if some options support a higher overall residual % than others? For example, a moonroof may be a "high demand" option for the f-type coupe. So it adds $1200 to the new cost of the car but 3 years later that option may still add $1k to the value of the car. So while the general residual of the car might be 59%, the moonroof option would slightly improve the overall residual of the car since this particular option would have an 83% residual.

On the other hand, is it possible that a "low demand" option could lower the overall residual %? For example, say I order the heated seats option and it turns out that people generally don't want to spend more money for that option. So let's say it's a $1500 option but 3 years from now it's only predicted to add $500 to the value of the car. So this particular option would have a 33% residual which would lower the overall residual of the car.

So can the options selected increase or decrease the overall residual % factor of a car to be leased based on whether the options are considered high demand or low demand?

 

AFAIK, no bank/financial institution does this. The residual is based on various factors but it's at the model trim level. So V6 vs V6S vs V8S vs R may/will differ. But all Rs have the same residual regardless if you get carbon ceramic brakes or not. There is such a thing as maximum value that the bank will consider. I don't think for the F-Types it's a factor, but for Porsches it definitely is. Think for the 911s it's around 130k. So if you option out a $140k 911, the bank will only consider up to $130k. Varies by bank, car. All of this of course doesn't apply to trade-in and private sales. Then the options definitely matter in terms of resale. You won't get much for your CC brakes :-)

 

@shift - thanks for the info

 

Before I was drawn to the Jag, I was looking at base 911's, and the salesperson mentioned a specific number over which the residual would not take into account. It was a while ago, but I think the base price was about $90,000, and the 'top end/sweet spot' was like $102,000, after which additional options would not be counted towards calculating the end of lease residual value.


I wouldn't be surprised if the dealer could tell you what that number is.


Frank

 

MRM is the only limitation on new leases and it depends on the lender. Chase does have an MRM on Jaguar leases. I'm guessing but I think the F Type R Coupe was circa 114k.

Porsche has MRM on all their models and my C4S last July had an MRM of 126k. My 991 Turbo S when I got it in January of 2014 had an MRM slightly over 198k I believe but it could have been a little lower.

The only time options play a part in residual building would be on used leasing. A used lease car, lender dependant, starts with a base value vs a percentage of msrp and then certain options can increase the residual.

 

Penfed uses the backup cam/blindspot monitor/pano roof as options that will increase the residual value.

With all 3 picked you add $950 to the residual value.

 

Good to know. I take it Penfed is some type of credit union?

 

Pen Fed is CU but their program referenced above is not a lease- its a retail baloon program.

 

$950 on a new price of twice that?

Another Mini experience: The List Price 10 years ago was~ £13,500, but you could easily double that.

At more moderate specs, while the residuals were excellent the spec was largely irrelevant unless you failed to choose particular items.

 

ah, that makes sense. you're on the hook at the end of the loan. If you can't sell/trade for the expected residual then you're on the hook for the balloon payment.

 

Yes it is lease like payments without the restrictions. You own the car. Refinance the balloon payment as a regular car loan if you plan on keeping the car.

I just used them as an example because they are the only ones that actually showed how they are calculating their residual value.

 

Yep so in this case I'd rather pay more depreciation up front with a lower apr and have a safer obligated buyout. This type of program resembles an open ended lease. BMW offers it as well (BMW Select) and this programs works well for those with heavier negative equity on trades. The problem is you still have to pay sales tax on the entire car up front.